Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to reclaim $1,800 despite upticks in yields and the dollar as downbeat US data fueled worries about recession, spurring demand for safe havens. The metal ended the weak 0.6% lower.

Retail sales fell 0.6% in November, as reported yesterday, for the biggest drop in nearly a year as higher inflation and interest rates combined to keep Americans from opening their wallets. A barometer of overall economic health, retail sales are viewed as a stand-in for consumer spending, which accounts for two-thirds of GDP.

Business conditions deteriorated in December, according to two surveys by S&P Global, as demand for goods and services has slowed. The “flash” services index slid to a four-month low. Manufacturing tumbled to a 31-month low, with new orders the weakest since the Great Recession of 2007 to 2009.

Despite the slowing economy, a pair Fed officials turned up the hawkish rhetoric, causing equity markets to shudder. New York Fed President John Williams and San Francisco Fed President Mary Daly separately said interest rates will have to go much higher to choke off inflation, prompting fears that the Fed will overdo and cause a recession.

All three major US equity indexes fell around 1% as risk-off sentiment prevailed. Benchmark 10-year Treasury yields ticked up slightly but remained under 3.5% and the dollar added 0.2%, both on the prospect of higher interest rates.

The other precious metals were mixed for the day and lower for the week. Silver added 0.1% today but fell 1.6% this week. Platinum dropped 1.3% for a weekly decline of 3.5%. Palladium tumbled 5.9% today and 13% this week.

At the Comex close: February gold gained $12.40 to $1,800.20; March silver added 2 cents to $23.33; January platinum lost $13.20 to $1,000; and March palladium plunged $107 to $1,706.60 an ounce.