Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell another 1.2% to close under $1,784 as Treasury yields continued to climb on Fed Chair Jerome Powell's nomination for a second term. A combined loss of 3.6% over two sessions pushed the metal to its lowest finish in three-weeks.

Treasury yields jumped again to a month high above 1.66% on bets that Powell's renomination has given him a mandate to speed up the taper of monetary easing announced earlier this month.

Underscoring the hawkish speculation, Atlanta Fed President Raphael Bostic said today that "there are good arguments to be made" to consider a faster elimination of monetary easing, especially if inflation and employment readings rise further. Bostic advocates raising rates once in 2022.

The conclusion of the $120 billion-per-month easing program is seen the first step toward raising interest rates, the Fed's favorite tool for curbing inflation.

Gold typically thrives as long-term store of value during periods of sharply higher inflation. But rising interest rates and Treasury yields create headwinds for the metal by increasing the opportunity costs for holding it instead of bonds as a safe-haven asset.

Strong economic data also pressured the gold price. IHS Markit's flash PMI for manufacturing rose to 59.1 in November, up from 58.4 in October, while the services gauge dipped slightly to 57. With anything above 50 showing expansion, both readings signaled ongoing momentum in Q4.

The other precious metals were also sharply lower, with silver dropping 3.6% while platinum and palladium fell 5% and 5.1%, respectively.

At the Comex close: December gold shed $22.50 to $1,783.80; December silver lost 87 cents to $23.45; January platinum shed $50.90 to $964.20; and December palladium dumped $100.30 to $1,850.30 an ounce.