Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinPrecious metals tumbled following the resumption of trading in China upon the conclusion of their annual golden week holiday. After the Chinese announcement of major economic stimulus two weeks ago, analysts were anticipating major, new stimulus announcements upwards of $2 to $3trillion yuan today upon markets reopening.

While officials in the Chinese National Development and Reform Committee reiterated that China would speed up spending, boost investment, and increase support for low-income groups, market participants were underwhelmed by their new $28 billion stimulus announcement.

Analysts suspect that without further new, major stimulus announcements, the Chinese economy will tread water close to their goal of 5% annual growth in 2024 and will not gain new economic momentum. If so, demand for commodities, including precious metals, in the world’s second largest economy will dampen and so will commodity prices. Precious metals tumbled today as a result.

The value of the dollar against a basket of international currencies, the US dollar index, and the yield on the US 10-year T-bill were unchanged from yesterday.

While Israel is still considering retaliatory responses to Iran’s ICBM attack, the Israeli cabinet still needs to approve of a proposed response. Israel’s speaker of the Knesset Amir Ohana said today, “discussions are still taking place at the highest level regarding the outline of the response, but it will be significant, and it will come.”

At the New York spot close: gold fell $29.80 to $2,615.00; silver tumbled $1.39 to $30.35; platinum fell $25.30 to $951.70; and palladium shed $19.40 to $1006.90 an ounce.