Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.2% to close under $2003 after robust US economic data shifted the outlook for interest rates once again, lifting yields and the dollar. It was the metal’s lowest finish in more than a month.

Retail sales rose 0.6% in December, beating forecasts and signaling solid underlying momentum in the engine of the economy, consumer spending. Retail purchases comprise a third of overall consumer spending, which accounts for roughly two-thirds of GDP.

Home-builder confidence surged in January, lifting the NAHB index for the second straight month as falling mortgages attracted new buyers.

US industrial output rose 0.1% on the strength of auto manufacturing and parts.

Benchmark 10-year Treasury yields climbed back over 4.1% for the first time in five weeks as traders speculated that the upbeat data would make the Fed less inclined to start cutting interest rates quickly. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Fed fund futures traders now put the odds of a March rate cut at 58%, down from around 67% yesterday, according to CME FedWatch.

Tracking higher with yields, the dollar rose to a fresh one-month high, pressuring gold and other commodities by making them pricier overseas.

The other precious metals were also sharply lower, with silver and platinum sliding 1.6% while palladium lost 2%.

At the New York spot close: gold dropped $23.40 to $2,002.60; silver fell 37 cents to $22.56; platinum lost $14.80 to $889.60; and palladium shed $18.40 to $919.70 an ounce.