Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 2.1% to close at $1,716 as Treasury yields and the dollar extended their slides and investors braced for the potentially divisive outcome of the US midterm elections. It was the metal's highest finish in more than a month.

With the Republican party expected to gain control of at least one house of Congress in today's election, the markets are preparing for gridlock in Washington. Divided government, the thinking goes, may decrease the likelihood that Congress will step in with a spending package to rescue the economy if it slips into recession, something that looks increasingly likely in 2023.

In addition, some members of the GOP have already said they will flex their newfound legislative muscle by refusing to lift the debt ceiling in coming months unless sizable cuts are made to Social Security and Medicare. This kind of fiscal brinkmanship could further rattle the markets.

Benchmark 10-year Treasury yields pulled back under 4.15% as investors sought safety from the political and financial uncertainty by flocking into the perceived safety of government bonds. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds.

The dollar tracked lower with yields, losing another 0.5% against major rivals, especially the euro, which rose on expectations the ECB will continue raising interest rates. A weaker dollar buoys gold and other commodities by them less expensive overseas.

The other precious metals were also higher, with silver jumping 2.8% while platinum and palladium picked up 2.5% and 1.9%, respectively.

At the Comex close: December gold gained $35.50 to $1,716; December silver rose 58 cents to $21.50, the highest level since mid-June; January platinum added $25.10, to $1,014.50; and December palladium climbed $35.10 to to $1,932.60 an ounce.