Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold held nearly flat, edging down 0.1% to close under $1,965, as yields and the dollar bounced back slightly from yesterday’s sharp declines despite cooling wholesale inflation.

US producer prices fell 0.5% in October for the biggest decline in wholesale inflation since April 2020. Coming one day after the consumer price index came in flat for the first time in 15 months, the weak PPI print was another sign that inflationary pressures are ebbing in the US economy.

Separately, US retail sales fell 0.1% last month for the first monthly decline since March, with a 1% tumble in auto sales leading the way. The decline was less than forecast. September’s 0.7% gain was revised higher to 0.9%, offering some encouragement about the residual strength of this key sector. Retail sales account for one-third of consumer spending, which constitutes around 70% of GDP.

After dropping yesterday by the most in a month, benchmark 10-year Treasury yields rebounded slightly to retake 4.5% after the September retail sales revision. Tracking higher with yields, the dollar bounced 0.3%.

Gold enjoyed its best day in a month yesterday after the soft CPI data convinced traders that the Fed is finished with rate increases. Fed fund futures traders now see virtually no chance of a rate hike at the FOMC meetings in December or January, with a 25% likelihood that rate cuts will begin in March.

The other precious metals were higher with silver rising 1.8% while platinum and palladium picked up 1% and 1.3%, respectively.

At the Comex close: December gold dipped $2.20 to $1,964.80; December silver jumped 41 cents to $23.54; January platinum rose $9.20 to $902; and December palladium added $13.70, to $1,040.30 and ounce.