Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold climbed 0.7% to close above $1,669 as another round of soft US data depressed yields and the dollar, buoying alternative assets. It was the metal's highest finish in two weeks.

US new home sale fell nearly 11% in September, the Commerce Department reported, for a year-over-year decrease of 17.6%. The culprit is sharply higher mortgage rates, which have risen above 7% to a 20-year high and caused application for new mortgages to tumble, putting additional pressure on the crucial housing market.

The trade deficit for goods rose 5.7% in September, the first increase in five months, as the strong dollar reduced exports. A larger trade deficit acts as a drag on GDP.

Benchmark 10-year Treasury yields slipped further to just above 4% as traders speculate that the slowing US economy may nudge the Fed to pivot away from jumbo rate hikes in coming months. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds.

The dollar plunged 1.1% against major rivals as the UK pound and euro rallied again behind the change in Britain's PM. The sterling has rebounded more than 2% in the last two sessions after Rishi Sunak, a former finance minister, succeeded Liz Truss as PM.

A weaker dollar supports gold and other commodities by making them less expensive in other currencies, lifting overseas demand.

The other precious metals were also higher, with silver rising 0.7% while platinum and palladium added 4.7% and 2.2%, respectively.

At The Comex close: December gold gained $11.20 to $1,669.20; December silver rose 14 cents to $19.49; January platinum picked up $42.80 to $962.50; and December palladium added $41.70, to $1,960.50 an ounce.