Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold tumbled 2.5% to close under $2,352 on profit-taking as traders shed almost every rallying investment in the wake of yesterdays major selloff on Wall Street. Silver plunged 4.1% to finish at $27.81 an ounce.

Weak tech earnings spurred a wipeout on Wall Street yesterday, driving the SandP 500 down by 2.3% for its worst day in a year. The tech-heavy Nasdaq fared even worse, plummeting 3.6% for its biggest daily drop in nearly two years.

Swept up in the selling convulsion, almost every rallying asset including mega-cap stocks, emerging markets, the dollar, crypto, and precious metals felt the panic today. And a tumultuous election cycle featuring an assassination attempt on Donald Trump and the decision by Joe Biden to leave the race, is fanning the flames of uncertainty.

Also weighing on gold, GDP for the second quarter came in stronger than expected at 2.8%, perhaps giving the Fed pause about reducing interest rates in September. But durable goods orders fell 6.6% in June, the biggest drop since the pandemic.

Tomorrows widely anticipated release of the latest PCE index, the Feds preferred inflation gauge, should give additional guidance on the course of interest rates this fall, and therefore golds immediate prospects.

Benchmark 10-year Treasury yields and the dollar both inched lower. Platinum and palladium lost 2.6% and 3%, respectively.

At the New York spot close: gold fell $61.40 to $2,351.90; silver shed $1,18 to $27.81; platinum lost $24.70 to $937.10; and palladium retreated $28 to $896 an ounce.