Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.2% to close near $1,980 as hopes for a pivot in monetary policy lifted equities, undercutting safe-haven assets.

All three major US stock indexes extended their recent rallies as traders bet that subdued inflation and softer economic data may induce the Fed to shift from rate hikes to cuts in coming months. The Dow and S&P 500 added 0.8% and 0.9%, respectively, while the rate-sensitive Nasdaq jumped 1.2%.

Following last week’s cooler-than-expected inflation readings, Fed fund futures traders see virtually no chance of rates hikes in either December or January. The odds of a rate cut are now 28% at the March Fed meeting and around 60% at the May meeting.

Today’s risk rally occurred despite more evidence that the US economy is cooling. The Conference Board’s leading economic indicators index fell 0.8% in October for its 19th consecutive monthly decline. The last time the index fell for so long was during the Great Recession, from late 2007 through 2009.

Stemming gold’s slide, benchmark 10-year Treasury yields ticked down slightly to 4.42% and the dollar lost 0.4% against major rivals. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds. A weak dollar helps gold and other commodities by making them cheaper in other currencies.

The other precious metals were mixed. Silver fell 1% while platinum rose 2.9% and palladium picked up 3.2%.

At the Comex close: December gold dipped $4.40 to $1,980.30; December silver shed 24 cents to $23.61; January platinum rose $25.70 to $927.40; and December palladium climbed $33.40 to $1,092.30 an ounce.