Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell another 1.3% to close under $1,634 as the dollar and bond yields surged again on global inflation and economic worries. It was the metal's lowest finish since March 2020.

The UK pound plunged 1.4% to an all-time low against the dollar today as investors, fearful that Britain's new fiscal plan will crush the country's finances, fled into the relative safety of the US currency. The euro also slid to a new 20-year low, and the yuan dropped to a 28-month low against the buck.

The UK fallout comes after new PM Liz Truss rattled markets on Friday by announcing huge tax cuts paid for by increasing debt as an attempt to stimulate Britain's faltering economy.

The dollar index, meanwhile, climbed another 0.8% on expectations that the Fed will continue with aggressive interest rates increases for the remainder of the year. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

Wall Street extended its slide on worries that inflation and concerted monetary tightening by major central banks may trigger a global recession. The Dow lost another 1.1% to close in bear-market territory for the first time since March 2020, while the S&P 500 lost 1% to plumb a new 2022 low.

Benchmark 10-year Treasury yields jumped above 3.9%, weighing on gold by increasing the opportunity cost for holding the non-yielding asset instead of bonds.

Also hurting gold, oil prices turned sharply lower on the dollar and recession concerns, with WTI crude losing 2.8% to hit an eight-month low around $76.50. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver falling 2.3% while platinum and palladium dropped 1% each.

At the Comex close: December gold fell $22.20 to $1,633.40; December silver shed 43 cents to $18.48; October platinum slid $8.60 to $850.10; and December palladium dropped $21.50 to $2,049 per ounce.