Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,789 after President Biden outlined a plan to combat omicron, stoking risk appetite and undercutting demand for safe havens.

Speaking at the White House, Biden acknowledged the threat posed by the aggressive new covid variant that is triggering restrictions on work, travel, and socializing across Europe. But he said "absolutely no" to reinstating the lockdowns of March 2020, which temporarily plunged the US economy into the deepest recession since the 1930s.

At the same time, Biden outlined an ambitious program to minimize the impact of the virus. The federal government will deploy military doctors, nurses, and other medical personnel to six states where the healthcare infrastructure has been overwhelmed by raging new infections. And some 500 million at-home testing kits will be distributed free of charge across the country starting in January.

The reassurances triggered a sharp rebound on Wall Street after a three-session selloff. The Dow jumped 1.6% while the S&P 500 added 1.8% and Nasdaq 2.4%.

Contributing to risk-on sentiment, Bloomberg reported that Biden and Senator Joe Manchin conversed by phone about the administration's $2 trillion Build Back Better bill. In an abrupt volt-face, Manchin withdrew support on Sunday, essentially dooming the plan. Further negotiations now seem possible.

Benchmark 10-year Treasury yields pushed back above 1.475% as investors shifted out of bonds and into stocks. Higher yield weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals were higher, with silver adding 1.1% while platinum and palladium rose 0.2% and 2.7%, respectively.

At the Comex close: February gold slipped $5.90 to $1,788.70; March silver rose 24 cents to $22.53; January platinum picked up $1.40 to $927.80; and March palladium climbed $47.20 to $1,793.10 an ounce.