Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold tumbled 1.5% to close under $1,891 as Treasury yields and the dollar continued to march higher in response to the Fed's "higher for longer" mantra. It was the metal's third straight losing session and lowest finish in more than six months.

Benchmark 10-year Treasury yields climbed to more than 4.6% as investors have taken to heart the Fed's recent statements that interest rates will need to rise further and stay high for longer than the market anticipated. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The Fed's quarterly-updated "dot plot" forecasting interest rate hikes, released and the end of last week's policy meeting, showed a clear majority of committee members expect to hike rates by another quarter-point by December. In addition, only 50 basis points in cuts are projected in 2024, down from a full 1% in June.

Investors are also worried that the rapid sell-off in Treasurys could cause instability in the financial markets, reminiscent of the collapse of SVB earlier this year, as banks and other Treasury holders lose capital.

Tracking higher with yields, the dollar rose another 0.4% to a 10-month high against major rivals, pressuring gold and other commodities by making them pricier overseas.

The other precious metals were also lower, with silver and platinum losing 2% each while palladium dipped 0.2%.

At the Comex close: December gold shed $28.90 to $1,890.90; December silver dropped 47 cents to $22.72; January platinum, now the most-active contract, slid $17.90 to $896.30; and December palladium edged down $2 to $1,223.70 an ounce.