Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose less than 0.1% to close near $1,762 as worries about the US debt ceiling spurred demand for alternative assets despite solid private payrolls data and a stronger dollar.

Benchmark 10-year Treasury yields pulled back from a three-month high but held above 1.5% as partisan conflict in Congress about raising the US debt ceiling weighed on risk appetite, lifting demand for safe havens.

Republican Senators have steadfastly refused to increase the government's borrowing limit, raising the risk of catastrophic default within weeks. Minority leader Mitch McConnell today suggested a short-term increase to avert a federal shutdown until November, granting only temporary respite to anxious markets.

Wall Street shifted from losses to minor gains after the McConnell concession, with all three major indexes adding around 0.2%.

Surprisingly strong payrolls data weighed on risk appetite early in the session. ADP reported 568,000 were added in the private sector last month, more than forecast, as Delta variant cases began to subside.

Traders anticipate that a similarly strong US nonfarm payrolls report, due Friday, will all but ensure reductions in monetary easing by the Fed in November.

The dollar rose 0.3% to the highest level in nearly a year on the taper view, capping gold's rise by making it pricier in other currencies, limiting overseas demand.

The other precious metals were mostly lower, with silver and palladium dropping 0.3% and 1.7%, respectively, while platinum rose 1.8%.

A the Comex close: December gold gained 90 cents to $1,761.80; December silver dipped 8 cents to $22.53; January platinum climbed $17.40 to $977.20; and December palladium dropped $31.60 to $1,867.80 an ounce.