Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slid 0.5% to close under $2,390 as equities, Treasury yields, and the dollar all rebounded after yesterdays broad selloffs. Silver added less than 0.1% to finish at $27.10 an ounce.

Fears of an imminent recession appear to have receded after near panic caused investors to liquidate most asset classes yesterday. All three major US equity indexes clawed back around 1% despite lingering worries that the US economy is ebbing toward recession.

One day after plunging to the lowest level in a month. Benchmark 10-year Treasury yields popped back up near 3.9% as traders, seeing the selloff as overdone, shifted back into risk assets. Rising yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Tracking with yields, the dollar added 0.3% against major rivals, pressuring gold by making it more expensive in other currencies.

The metal remains supported by escalating tensions in the Middle East after Hezbollah attacked northern Israel with drones and rockets. And the prospect of falling interest rates is also buoying gold after pair of Fed officials, Mary Daley of the San Francisco Fed and Austan Goolsby of the Chicago Fed confirmed separately that rate cuts are coming in September.

Platinum and p0alladium rose 0.5% and 4.2%, respectively.

At the New York spot close: gold dipped $12.60 to $2,389.10; silver slipped 2 cents to $27.10; platinum picked up $4.70 to $920.20; and palladium climbed $34.40 to $860.40 an ounce.