Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $2,048 as upbeat US data strengthened the dollar, prompting traders to take profits after two rising sessions despite a slight downtick in bond yields.

US consumer confidence jumped to a five-month high this month, according to the Conference Board survey, as falling inflation lifted optimism about the economic outlook. Separately, sales of exiting homes rose unexpectedly in November, suggesting continued momentum in the crucial housing sector.

Yet another Federal Reserve official tried to talk down market expectations that the Fed will begin cutting interest rates in March. Philly Fed chief Patrick Harker said today that the fight against inflation is “not done” and the central bank does not plan to reduce rates soon.

Following last week’s dovish forward guidance after the FOMC meeting, Fed fund futures traders raised bets on a March rate cut to 71% likelihood, up from less than 40% before the Fed meeting.

The dollar rose 0.3% against major rivals led by the British pound, which fell sharply after UK inflation fell to a two-year low, prompting expectations that the BoE will begin cutting rates in March. A rising buck weighs on gold and other commodities by making them pricier in other currencies.

Benchmark 10-year Treasury yields fell under 3.9% in sympathy with British gilt yields, which also tumbled on rate cut expectations after the surprising inflation print. Lower yields typically support gold by reducing the opportunity cost for holding it instead of bonds.

The other precious metals were mixed. Silver and platinum added 1.3% and 0.8%, respectively, while palladium fell 1.1%.

At the Comex close: February gold dipped $4.40 to $2,047.70; March silver rose 31 cents to $24.63; January platinum picked up $8.20 to $974; and March palladium retreated $14 to $1,226.90 an ounce.