AGE Daily Gold Update

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

7/24/2024: Gold rises as dollar falls

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose 0.4% to close above $2,413 as the dollar fell on mixed US data and growing certainty that the Fed will cut interest rates in September if not before. Silver edged down 0.2% to $29.06 an ounce.

The S&P US services index jumped in July to a 28-month high of 56, where any reading over 50 signifies expansion. Service-oriented firms like realtors, banks, and hospitals employ most Americans. But the manufacturing side of the economy fell to a six-month low of 49.5, according to the S&P survey. Employment across both sectors was flat.

Sales of new single-family homes tumbled to a seven-month low in June. The crucial housing market remains hamstrung by high mortgage rates and high prices.

The US trade deficit in goods narrowed in June by 2.5% on an upsurge in exports. It was the first lessening in five months. Smaller deficits typically support higher GDP.

The dollar slid 0.2% against major rivals and dropped to the lowest level against the yen in two months as the Bank of Japan appears to be leaning toward unwinding its ultra-loose monetary policies. A weaker dollar supports gold by making it cheaper overseas.

Growing certainty about rate cuts also weighed on the buck. Fed fund futures traders now put the odds of at least a quarter-point reduction in September at 100%, according to CME FedWatch, with the odds of at least one more by December at 97%.

While the odds of rate cut when the Fed meets next week are currently just 7%, former New York Fed President William Dudley said today that the central bank should reduce rates now to prevent further weakness in the labor market and possible recession. Dudley was formerly a policy hawk.

In a bullish move for the global market, India slashed import duties on gold and silver to 6% from 15%. India is the world's second-largest consumer of physical gold.

Platinum and palladium rose 1.5% and 1.4%, respectively.

At the New York spot close: gold rose $8.70 to $2,413.30; silver slipped 8 cents to $29.06; platinum picked i[p $13.80 to $961.80; and palladium advanced $12.90 to $924 an ounce.