Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.8% to close above $1,966 as weaker-than-expected consumer inflation hammered yields and the dollar, boosting alternative stores of value. It was the metal’s best day in a month.

The Consumer Price Index was unchanged in October, posting the smallest reading in 15 months, while the 12-month inflation rate fell to 3.2% after rising 3.7% in September. The so-called core rate, minus food and energy, ticked up a modest 0.2% while the 12-month core rate fell to 4%, the lowest level in two years.

Benchmark 10-year Treasury yields plummeted nearly 20 basis points, the most in a month, to less 4.45% as traders speculated that the Fed is done raising interest rates. Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar tumbled 1% against major rivals, lifting gold and other commodities by making them cheaper in other currencies.

The Fed fund futures market now sees virtually no chance of a rate hike in either December or January, down from 16% and 24%, respectively, before the CPI print. And traders are now pricing at least four rate cuts in 2024, with expectations of a fifth cut by December doubling to nearly 23%.

Wall Street surged on the cooling inflation. The Dow added 1.7% while the S&P 500 rallied 2.1% and the rate-sensitive Nasdaq picked up 2.5%.

The other precious metals were also higher, with silver and platinum rising 3.4% each and palladium climbing 4.5%.

At the Comex close: December gold gained 0.8% to close at $1,966.50; December silver surged 77 cents to $23.13; January platinum picked up $29.20 to $892.80; and December palladium advanced $44.30 to $1,026.60 an ounce.