AGE Daily Gold Update

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

7/18/2024: Gold hovers near record highs

Source: Bill Musgrave, American Gold Exchange

Austin — After closing at a new all-time high above $2,462 on Tuesday, New York spot gold consolidated its gains for a second session, edging down 0.1% to finish under $2,452. Mixed US data and upticks in Treasury yields and the dollar weighed on the metal as traders try to weigh the extent of imminent easing by the Fed. Silver shed 0.5% to close at $30 an ounce.

The Conference Board reported its index of leading economic indicators fell 0.2% in June for its fourth straight monthly decline, signaling a slowdown in US growth. The LEI has only risen once in the past 30 months, in February.

First-time jobless claims jumped 20,000 to 243,000 last week, close to a one-year high, in part because of Hurricane Beryl's landfall in Texas. But stripping out the effects of Beryl, new claims increased and are trending up, suggesting layoffs are rising.

One the positive side, The Philly Fed factory index surged to 13.9 in July from 1.3 in June, where any reading above zero indicates expansion. It was the sixth straight positive reading.

Fed fund futures traders are beginning to question the extent of the pending easing cycle by the Fed. While the odds of a September rate cut hold at 98%, the likelihood of five or six cuts by next June has diminished slightly as traders consider the potentially inflationary tariffs promised in a second Trump administration.

Benchmark 10-year Treasury yields edged up near 4.2% on the shifting longer-term rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking higher with yields, the dollar added 0.4% against major rivals, making gold and other commodities pricier in other currencies.

Platinum and palladium dropped 2.2% and 2.6%, respectively.

At the New York spot close: gold dipped $3.80 to close at $2,481.50; silver slid 14 cents to $30; platinum shed 22.20 to $978.40; and palladium retreated $25 to $929.20 an ounce.