Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.2% to close under $1,851 as upbeat corporate earnings lifted risk appetite and Treasury yields, undercutting demand for alternative assets. It was the metal's fourth straight down session.

Wall Street rose across the board, with all three major US indexes adding around 0.2% as earnings season got off to a solid start. Of the 84 companies posting results so far 87% have exceeded forecasts, with drug and tech firms leading the way.

Some positive economic data also helped risk sentiment. Consumer confidence rebounded in December, according to the Conference Board, as vaccine rollouts and an improving economy bode well for Americans' spending habits.

Home prices are rising at the fastest rate in a decade, according to Case-Schiller, adding to the wealth effect for homeowners and signaling ongoing momentum in this crucial economic sector.

Treasury yields rose slightly as traders, anticipating higher inflation from loose-money policies and huge fiscal stimulus programs, sold off lower yielding bonds. Higher yields can be a headwind for gold by increasing opportunity costs for holding the metal instead of bonds as a safe-haven asset.

The Federal Reserve's two-day meeting on monetary policy begins today, although no real changes are expected to near-zero interest rates and ongoing quantitative easing of $120 billion per month. Investors will scour tomorrow's post-meeting policy statement for indications about any concerns over rising inflation.

Backstopping gold's slide, the dollar fell 0.3% against major rivals as riskier currencies rebounded on the upbeat data and hopes for big spending from the Biden administration. A weaker dollar typically supports gold and other commodities priced in it for global trade.

The other precious metals were mixed, with silver and platinum adding 0.2% each while palladium fell 0.9%.

At the Comex close: February gold slid $4.30 to $1,850.90; March silver rose 5 cents to $25.54; April platinum picked up $2.70 to $1,107.40; and March palladium lost $21.90 to $2,325 an ounce.