Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close at $1,672 as the dollar inched lower and soft US data lifted demand for safe havens. The metal added 1% for the week but fell 3.1% for the month and 7.5% for the quarter, hammered by the dollar's Fed-driven rally.

The Personal Consumption Expenditures index rose 0.3% in August, held in check by sharply lower gasoline prices. But the core PCE, less volatile food and energy costs, jumped 0.6% to reach 4.9% for the past 12 months. The Fed views the core PCE as the best gauge of inflation.

Consumer spending rose a scant 0.1% in August with inflation factored out, a sign that rising prices are putting a strain on households. Consumer spending accounts for around 70% of GDP.

The University of Michigan survey on consumer sentiment came in weaker than expected, signaling that Americans remain pessimistic about their economic prospects. Falling gas prices have helped to improve the outlook somewhat but sharply higher prices for food and other staples are keeping sentiment at recessionary levels.

And the Chicago PMI measuring the business outlook for manufacturers fell sharply into contraction last month. It is the last regional PMI before the national ISM gauge is released on Monday.

Benchmark 10-year Treasury yields pushed up over 3.8% and 2-year yields surpassed 4.2% as the higher PCE inflation readings bolstered expectations at that the Fed will march on with their aggressive rate-hiking regimen.

Over the past three quarters, Treasury yields have risen by the most in at least 25 years, creating headwinds for gold because by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar edged slightly lower today but posted its biggest quarterly rise since 2015, also on the prospect of higher interest rates.

Wall Street's abysmal performance has helped backstop gold's Fed-driven slide. All three major indexes fell at least 1.5% today to reach their lowest finishes since 2020.

The other precious metals were mixed. Silver gained 0.7% for the day and 6.5% for the month but lost 6.5% for the quarter. Platinum lost 0.1% today and 4% for the quarter. Palladium lost 1.3% for the session but rose 14% this quarter.

At the Comex close: December gold rose $3.40 to $1,672; December silver added 33 cents to $19.04; January platinum slid $1.10 to $859.10; and December palladium dropped $28.90 to $2,182.20 an ounce.