AGE Daily Gold Update

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

11/5/2024: Gold gains on dollar, uncertainty

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.2% to close above $2,740 despite upbeat ISM data as the dollar fell and investors braced for an uncertain outcome to the US Presidential election. Expectations that the Fed will lower interest rates also boosted bullion. Silver rose 0.5% to finish at $32.63 an ounce.

The US services sector surged to a two-year high in October, the ISM reported today, indicating that the businesses where most Americans work are booming. Including healthcare, hospitality, restaurants, banks, retailers, and others, the services sector accounts for more than 75% of the economy.

Notably, services employment jumped 55 to a 14-month high while the prices-paid index, measuring inflation, fell to low pandemic levels.

Benchmark 10-year Treasury yields climbed back above 4.3% as the ISM data whetted risk appetite, shifting investors from bonds to stocks. All three major US equity indexes rose sharply.

Moving opposite yields for a change, the dollar fell 0.4% against major rivals as the so-called Trump trade unwound for a second session. While some betting markets continue to predict a Trump win, recent polling data shows momentum shifting to Harris, whose policies are expected to be less inflationary.

The tense race has left many Americans in fear of turmoil if the outcome is unclear. Gold traditionally rises in the face of geopolitical uncertainty.

Also supporting bullion, the Fed is expected to cut interest rates by a quarter-point at its two-day meeting this week, which is likely to further pressure the dollar. A weaker buck makes gold less expensive in other currencies.

Platinum and palladium gained 1.5% and 0.7%, respectively.

At the New York spot close: gold gained $4.20 to $2,740.30; silver added 15 cents, to $32.63; platinum picked up $15.10 to $997.45; and palladium advance $7.20 to $1,078.60 an ounce.