Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,993 after net-positive US data lifted yields and the dollar, prompting traders to take profits from yesterday’s 1.1% rally above $2,000 an ounce.

First-time filings for unemployment dropped 24,000 to a five-week low of 209,000 last week, signaling residual strength in the labor market. Ongoing claims also declined for the first time in eight weeks.

Separately, consumer sentiment ticked up toward the end of November, signaling mild optimism about the state of the economy. But Americans continue to fret about inflation, believing it will average 4.5% over next year despite the CPI falling to 3.2% in September.

On the negative side of the ledger, orders for durable goods plunged 5.4% in October, the government reported, falling short of forecasts. So-called core orders, minus defense and transportation, dipped a modest 0.1%.

Benchmark 10-year Treasury yields crept back above 4.4% on the upbeat data, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar recouped some of its recent losses, bouncing 0.4% from a 30-month low. A stronger dollar is a headwind for gold and other other commodities because it makes them more expensive in other currencies, limiting overseas demand.

Lower oil also weighed on the metal as US benchmark WTI crude lost 1.1% after OPEC+ producers unexpectedly delayed a meeting on production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver sliding 0.8% while platinum and palladium lost 1.6% and 3.6%, respectively.

At the Comex close: December gold slipped $8.80 to $1,992.80; December silver shed 18 cents to $23.69; January platinum lost $15.20 to $930.70; and December palladium plunged $38.90 to $1,056.60 an ounce.