AGE Daily Gold Update

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

11/11/2024: Gold tumbles on risk rally

Source: Bill Musgrave, American Gold Exchange

Austin — With banks and bond markets closed for Veterans Day, New York spot gold tumbled 2.8% as the dollar rallied further and rising risk appetite pulled monies away from safe havens. Silver dropped 2.6% to finish at $30.54 an ounce.

With Republicans winning control of the White House and Senate, and with the undecided House likely to tilt GOP, the markets are betting that rollbacks in taxes and regulations will drive risk assets sharply higher. Wall Street was mixed for the day, all three main indexes are hovering near all-time highs after Donald Trump's decisive re-election.

The dollar rallied another 0.5% against major rivals, reaching the highest level in five months on expectations that tariffs and tax cuts, Trump's primary economic policies, will be inflationary and limit the Fed's ability to cut interest rates. A rising dollar weighs on gold and other commodities by making them pricier overseas.

Plunging oil prices also pressured bullion as WTI crude lost 3.2% on the stronger dollar and worries that China's recently announced stimulus program will do little to revive demand in the world's leading manufacturer. Gold often trades in sympathy with oil as a hedge against rising energy prices.

Platinum and palladium shed 1% each.

At the New York spot close: gold fell $76.30 to $2,611.20; silver slid 82 cents to $31.54; platinum dropped $9.30 to $964.30; and palladium retreated by $9.90 to $982.30 an ounce.