Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close near $1,799 as concerns about growth and inflation pressured longer yields and the dollar, lifting demand for safe-haven assets.

Orders for US durable goods dropped 0.4% in September, the Commerce Department reported, after rising 1.3% in August. The weakness was mainly in autos and aircraft while orders for so-called core goods, excluding military and transportation, were up 0.8%.

The FCC has banned China's largest telecom firm from operating in the US, citing fears of espionage and foreign control. The move is expected to deepen tensions between the world's two largest economies.

Some of the biggest US manufacturers including GM, GE, 3M, and others, reported that supply-chain problems are expected to disrupt operations well into next year. To mitigate the hit to their bottom lines, they told investors prices will continue to charge higher prices for their goods.

Meanwhile, the Atlanta Fed's Q3 estimate for real GDP growth fell to just 0.2%, down from 0.5% a week ago and more than 3.7% late last month.

The combination of middling recent data and higher inflation have traders worried that the Fed may snuff the nascent recovery if it moves too aggressively to remove pandemic stimulus when it meets next week.

Long-dated Treasury yields fell by the most in three months to under 2%, suggesting that investors are less optimistic about the economy in the longer term. Benchmark 10-year Treasury yields fell back toward 1.5%. Falling yields typically lift gold by decreasing the opportunity cost for holding in instead of bonds.

Short-dated Treasury yields rose, however, flattening the yield curve on expectations that the Fed will need to raise interest rates next year to curtail inflation. A flattening curve typically signifies high inflation expectations in the short term along with low expectations for growth in the long term.

The dollar fell 0.2% against major rivals, supporting gold and other commodities priced in it for global trade.

The other precious metals were mixed, with silver adding 0.4% while platinum and palladium fell 1.3% and 1.5%, respectively.

At the Comex close: December gained $5.40 to $1,798.80; December added a dime, $24.19; January platinum lost $13.60 to $1,019.30; and December palladium dropped $30.50 to $1,974.30 an ounce.