AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

7/8/2024: Gold falls on profit-taking

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold fell 1.4% but held above $2,355 as risk appetite increased and traders took profits from last week's 2.6% rise to a one-month high above $2,388. Silver slid 2.6% to finish at $30.62 after surging 7.4% last week.

A sharp rally in tech stocks lifted the S&P 500 and Nasdaq to record highs early in the session, curtailing demand for safe havens like gold, as traders digested last Friday's subpar payrolls data. Chipmaker Nvidia and AI-related manufacturers led the rally, spurred by the growing likelihood of rate cuts from the Fed.

The economy added 206,000 jobs in June but lost 110,000 jobs from totals in April and May, lifting the unemployment rate to 4.1%, a 30-month high. Following recent data showing weakening inflation and slowdowns in manufacturing and service-related firms, the soft labor data increases the likelihood that the Fed will have to act soon to prevent a sharp downturn in the economy.

Fed fund futures traders now see a 77% likelihood of a rate cut in September and 64% chance of another cut in December. This Thursdays' release for the CPI for June should add further clarity to the rate view.

The dollar added 0.1% against major rivals, pressuring gold and other commodities by making them pricier on other currencies. Benchmark 10-year Treasury yields. Benchmark 10-year Treasury yields were virtually unchanged.

Platinum and palladium dropped 3% and 2.4%, respectively.

At the New York spot close: gold fell $33.30 to $2,355.20; silver slid 77 cents to $30.62; platinum pulled back $31.60 to $1,008.70; and palladium shed $24.90 to $1,014.70 an ounce.