Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 1.7% to close under $1,764 as solid retail sales data lifted risk appetite and pressured demand for safe-haven assets. But the metal still tallied a weekly gain of 0.6%, its strongest since early September, as investors hedged against sharply higher inflation.

US retail sales climbed 0.7% in September, beating forecasts, as Americans spent freely on goods despite the resurgent pandemic. Sales rose in most major categories including autos. With inflation at a 30-year high, sales figures were likely exaggerated by record-high prices as they are tracked by amount spent.

With consumer spending accounting for more than two-thirds of GDP, the surprisingly strong sales print pushed investors towards stocks. The Dow and S&P 500 added 1.1% and 0.8% while the Nasdaq picked up 0.5%. Solid bank earning also powered financial stocks.

Benchmark 10-year Treasury yields bounced higher as investors traded safe-havens for risk assets. Higher yields tend to pressure gold by increasing the opportunity cost for holding it instead of bonds.

Not all today's economic reports were upbeat, however. The University of Michigan's preliminary estimate showed a decline in consumer sentiment from September to October, with the Delta variant and supply-chain disruptions dimming the outlook. And New York factory output fell unexpectedly in October, as measured by the Fed's Empire State index.

The other precious metals were mixed for the day but up for the week. Silver slipped 0.6% for a weekly gain of 2.8%. Platinum added 0.6% to extend its weekly rise to 3%. Palladium dropped 3.5% today but ended the week 0.2% higher.

At the Comex close: December gold slid $29.60 to $1,768.30; December silver dropped 13 cents to $23.35; January platinum picked up $6.60 to $1,058.90; and December palladium lost $74.30 to $2,076.60 an ounce.