Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged nearly 1% to close at a two-week high above $2,069 as falling inflation and mixed data solidified expectations of rate cuts in 2024, pressuring the dollar and lifting alternative stores of value. The metal ended the week 1.6% higher.

The Fed’s favorite inflation gauge, the personal consumption expenditures index, fell 0.1% in November, pushing the 12-month rate down to 2.6% from 2.9% in October. It was the first monthly decrease since 2020 and the lowest annual rate since early 2021.

The so-called core PCE, minus volatile food and energy costs, rose a mere 0.1% for the month, pulling the 12-month core rate down to 3.2% from 3.4% in October.

Falling inflation has all but cemented the prospect of a Fed policy pivot in 2024. Fed funds futures traders now place the likelihood of a March rate cut at nearly 89% after the PCE print, up from 83% yesterday, 69% a week ago, and just 27% a month ago.

The dollar fell to a five-month low against major rivals on the prospect of lower interest rates, posting a weekly loss of 2%. A weaker dollar lifts gold and other commodities by making them less expensive in other currencies, boosting demand overseas.

Benchmark 10-year Treasury yields were little changed, hovering around the lowest levels since last July.

Other economic data was mixed. New home sales plummeted 12.2% in November as high mortgage rates kept buyers out of the market. Durable goods orders jumped 5.4%, the most since July 2020, on demand for airplanes and cars; but core capital goods, a proxy for business investment, rose a meager 0.8%. Consumer sentiment rose to a five-month high on waning inflation.

The other precious metals were mixed for the day and higher for the week. Silver inched down slightly but still gained 1.7% this week. Platinum picked up 1.2% today and 2.1% this week. Palladium slipped 0.4% for a weekly rise of 1.8%.

At the Comex close: February gold gained $17.80 to $2,069.10; March silver dipped two cents to $24.57; January platinum added $11.50, to $981.80; and March palladium retreated $4.50 to $1,223.70 an ounce.