AGE Daily Gold Update

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

11/15/2024: Gold has worst week in 3 years

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slid 0.1% to close at $2,566 after surprisingly strong US data and hawkish comments from Jerome Powell shifted the outlook for interest rates. Bullion fell 4.5% for the week, its biggest weekly retreat in three years, following the dollar’s sharp rally on the re-election of Donald Trump. Silver slid 0.5% to finish at $30.37 an ounce, posting a weekly decline of 3.2%.

Retail sales increased 0.4% in October, more than forecast, and September’s total was revised up to 0.8%, twice the rise initially reported. With retail sales contributing the lion’s share of consumer spending, which itself comprises 70% of GDP, the data signal strong underlying momentum in the US economy.

Separately, the New York Empire State index of business conditions, an important gauge of manufacturing activity, surged in November to the highest level in nearly three years.

The upbeat reports come one day after Fed Chair Jerome Powell, speaking to business leaders in Dallas, said the economy’s current strength means the Fed does not “need to be in a hurry to lower rates.”

Fed fund futures traders have lowered their bets on a December rate cut, dropping the odds to 60% from 72% yesterday and 86% one month ago.

The dollar edged up slightly to the highest level in more than a year as traders brace for a slower cycle of rate cuts and the possibility of rekindled inflation because of Trump tariffs. A stronger dollar weighs on gold by making it more expensive in other currencies, stifling demand overseas.

Benchmark 10-year Treasury yields also ticked higher, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Platinum dropped 0.1% today and 2.9% this week. Palladium lost 1.9% for a weekly loss of 5.1%.

At the New York spot close: gold dipped $2.20 to $2,566; silver slipped 14 cents to $30.37; platinum edged down $1.10 to $941.15; and palladium shed $17.60 to $943.30 an ounce.