Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.1% to close above $1,998 as the Fed’s preferred inflation gauge showed core prices falling last month, perhaps decreasing the likelihood of another rate hike by the Fed. The metal rose 0.2% for the week, posting its third straight weekly rise.

Gold then surged above $2,016 in electronic trade after Israel expanded its military operations in Gaza, raising concerns about a wider war and driving investors toward safety.

The Personal Consumption Expenditures index rose 0.4% in September, slightly more than expected. The annual inflation rate held steady at 3.4%. Much of the increase came from higher oil prices. The so-called core PCE, minus food and energy, rose 0.3%, lowering the annual core rate to 3.7% from 3.8% in August.

Meanwhile, consumer spending rose 0.7% last month, more than expected, signaling that this important part of the economy remains robust despite higher borrowing costs. Household spending accounts for roughly two-thirds of GDP.

Benchmark 10-year Treasury yields retreated slightly as traders speculated that the falling core PCE number will dissuade the Fed from raising interest rates again. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking yields, the dollar also edged slightly lower, supporting gold and other commodities by making them cheaper overseas.

After a modest rise in the regular session, gold surged $18 an ounce after hours, topping $2,016, when Israel’s top military spokesperson said ground and air operations in Gaza are intensifying. In addition, the US military struck Iranian targets in Syria in response to a series of small attacks on US forces.

The other precious metals were lower for the day and mixed for the week. Silver dipped 0.1% today and 2.6% this week. Platinum slipped 0.4% for the session but added 2.4% for the week. Palladium lost 1.1% today but gained 1.7% this week.

At the Comex close: December gold rose $1.10 to $1,998.50; December silver dipped 2 cents to $22.89; January platinum slid $3.20 to $905.80; and December palladium shed $12.60 to $1,130.20 an ounce.