Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose for a fourth session, rising 0.5% to close above $1,810, as hotter-than-expected wholesale prices spurred demand for inflation hedges despite higher yields and a stronger dollar. The metal added 0.1% for the week, notching its third straight weekly win.

The producer price index rose 0.3% in November, slightly more than forecast, led by sharply higher prices for food and financial services. Energy costs notably shrank by 3.3% after a 2.3% rise the month before. The 12-month PPI slowed to 7.4%, the lowest annual rate since May 2021.

Benchmark 10-year Treasury yields rebounded to nearly 3.6% as traders speculated that the Fed may be continue its aggressive monetary tightening when it meets next week on policy. Rising yields are typically a headwind for gold because they make bonds slightly more attractive.

The dollar tracked higher with yields, adding 0.2% against major rivals. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

All three major US stock indexes fell more than 0.7% and posted weekly losses.

The other precious metals were higher for the day and week. Sliver rose 2% for a weekly rise of 2%. Platinum climbed 2.1% today and 0.9% this week. Palladium added 2% for a weekly increase of 3.6%.

At the Comex close: February gold gained $9.20 to $1,810.70; March silver jumped 47 cents to23.72; January platinum picked up $21.60 to $1,036.20; and March palladium rose $38 to $1,968.80 an ounce.