AGE Daily Gold Update

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

7/23/2024: Gold tops $2,400 on rate view

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.5% to close above $2,404 despite a slight rise in the dollar as Treasury yields retreated again on rate-cut expectations and changes in the presidential race, boosting alternative assets. Silver was nearly flat, adding a penny to finish at $29.13 an ounce.

Just days after President Biden chose to withdraw his candidacy, VP Kamala Harris has garnered enough support from delegates to clinch the Democrat nomination for president. Harris is seen as likely to continue Bidens fiscal policies whereas former president Donald Trump's promise to levy tariffs across the board are viewed as inflationary.

In a new Reuters poll, 82% of the 100 economists surveyed expect a quarter-point rate cut in September, with nearly 75% also expecting a second cut of the same size by December. Fed fund futures traders are even more dovish, with the odds of a September cut at 96% and another in December at 95%.

Benchmark 10-year Treasury yields rolled back on the rate view and speculation that Harris is more electable than Biden, so inflation is perhaps more likely to keep falling if she wins. Lower yields help gold by reducing the opportunity cost for holding it instead of bonds.

The dollar added 0.1% after China unexpectedly cut interest rates yesterday to boost its flagging economy.

Platinum edged down less than 0.1% while palladium rose 2%.

At the New York Spot close: gold gained $12.60 to $2,404.60; silver picked up cent to $29.13; platinum dipped 40 cents, to $948; and palladium picked up $18.30 to $911.10 an ounce.