Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close above $1,995 as worries about Middle East turmoil and corporate earnings trumped rises in yields and the dollar, pressuring equities and lifting alternative assets.

Israel’s military stepped up its bombardment of southern Gaza overnight and Prime Minister Benjamin Netanyahu said today that it is “preparing for a ground incursion” into the region. Reflecting concerns about the conflict spreading around the Middle East, the US is reportedly rushing missile defense systems into the region to support Israel.

Wall Street retreated after tech giants like Meta, Alphabet, and Microsoft posted mixed earnings for Q3. The S&P 500 lost 1.4% and the tech-heavy Nasdaq plunged 2.3%. The prospect of high interest for a sustained period also weighed on the rate-sensitive technology sector.

The odds of another rate hike this year stand at just 26%, according to Fed fund futures trading, down from 38% last week. But the growing possibility that Middle East violence may spread, disrupting oil supplies and adding to inflation, could force the Fed to hold rates high for longer.

Benchmark 10-year Treasury yields rebounded above 4.9% on the rate-view worries, capping gold’s rise by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking higher with yields, the dollar picked up 0.2% to nearly a one-week high against major rivals.

The other precious metals were mixed, with silver sliding 0.5% while platinum and 0palladium rose 2.3% and 0.5%, respectively.

At the Comex close: December gold gained $8.80 to $1,995.20; December silver slid 11 cents to $23; January platinum jumped $20.50 to $912.40; and December palladium added $6.10, to $1,133.60 an ounce.