Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.6% but held above $1,700 as the dollar rallied on a weaker euro ahead of the European Central Bank’s policy meeting tomorrow, pressuring alternative stores of value

Speculation that the ECB will lift interest rates by 50 basis points decreased today after reports that the Nord Stream II pipeline will reopen after maintenance. The primary conduit for natural gas from Russia, the pipeline was widely feared to be permanently closed as retribution for the EU’s support of Ukraine.

The euro had risen 2% over the previous two sessions on expectations that the big hike would be needed to quell Eurozone inflation driven, in part, by the prospect of a pending energy crisis because of the Nord Stream closure.

The dollar rose 0.3% against major rivals as the euro retreated, pressuring gold and other commodities by making them more expensive in other currencies.

An uptick in risk appetite also pulled traders away from precious metals after Netflix posted stronger-than-forecast profits, lifting the entire tech sector and pulling other indexes higher in its wake. The tech-heavy Nasdaq rose 1.6% while the S&P 500 and Dow added 0.7% and 0.3%, respectively.

Oil prices pulled back, with US benchmark WTI dropping 1.6% as slowing global growth and the Nord Stream news triggered demand concerns. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed. Silver slipped 0.2% and platinum dropped 1.4% while palladium rose 0.4%.

At the Comex close: August gold slid $10.50 to $1,700.20; September silver dropped a nickel to $18.67; October platinum slid $12.40 to $846.50; and September palladium picked up $7.40 to $1,861.60 an ounce.