Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold climbed 1% to close above $2,769, a new record high, as geopolitical uncertainty in the US, Middle East, and Japan drove investors toward safety. Expectations of further easing from the Fed also boosted bullion demand. Silver rose 1.5% to finish at $34.35 an ounce.

With Donald Trump and Kamala Harris running and neck in the final week of campaigning, and with rhetoric mounting to a boil on both sides, the prospect of a tumultuous and perhaps violent outcome is prompting investors to seek protection.

In addition, Japan's government is in flux after PM Shigeru Ishiba's coalition was defeated last weekend, leaving no party with a governing majority. And escalating violence in the Middle East is adding to the global uncertainty after another Israeli strike on Gaza left more than 90 Palestinians dead and missing.

Gold is often sought out as currency of last resort during times of geopolitical turmoil.

Adding to bullion's appeal, the Fed is almost universally expected to cut interest rates by a quarter-point when it meets next week and then follow up with a similar rate cut in December. Lower interest rates typically weigh on yields and the dollar, boosting demand for gold by decreasing the opportunity cost for holding it and making it cheaper overseas.

But data this week could influence the central bank's easing outlook. The ADP payrolls reports is due tomorrow, the PCE inflation index on Thursday, and the government's nonfarm payrolls report on Friday.

Consumer confidence rose to the highest level in since January as the Americans increasingly expect the economy to escape a recession. But US jobs opening fell to the lowest level since January 2021, in the depth of the pandemic, as companies cut back on hiring.

Benchmark 19-year Treasury yields pushed above 4.3%, capping gold's gains, while the dollar was virtually unchanged.

Platinum and palladium added 1.3% and 0.3%, respectively.

At the New York spot close: gold gained $26.40 to $2,769.30; silver rose 52 cents to $34.35; platinum picked up $13.70 to $1,051; and palladium added $3.40, to $1,228.30 an ounce.