Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinTreasury yields and the dollar gained Tuesday, pressuring gold lower once markets reopened following the long Labor Day weekend. Foreign interest in U.S. bonds surged during Tuesdays $58 billion three-year treasury note auction, boosting yields and the dollar in the process. Bargain hunting repositioning from the euro into the dollar, which hit one-month highs and lows respectively following Friday’s dismal jobs report, were cited as reasons for the dollars gains. In addition, traders have now had a chance to look past the weakest job gains in seven months at underlying data in Friday’s jobs report that remained fairly strong, including a 0.6% wage gain, that was double market expectations, helping to boost yields and the greenback off of recent lows. These gains inversely pushed gold lower, and back under $1,800, giving back all of Friday’s jobs dismal report gains.

U.S. economic activity in Q3 is clearly slowing, with GDP estimates now anticipating growth of under 4% for Q3, down considerably from its scorching pace of 6.3% in Q1 and 6.6% in Q2, 2021. Some analysts are now indicating that the US economic recovery in 2021 may have already peaked. Despite this economic softening, the U.S. economy remains relatively stronger than the Euro economy, helping to boost the short-term move out of euros and into dollars.

At the Comex close: December gold fell $37.40 to $1,796.30; December silver fell 41 cents to close at $24.39; October platinum dropped $27.40 to $994.20; and December palladium shed $50.80 to $2,365.50 per ounce.