AGE Daily Gold Update

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

11/18/2024: Gold surges on haven demand

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold surged 1.8% to close above $2,610 as Treasury yields and the dollar retreated while investors sought safety from increasing uncertainty in the Russia-Ukraine conflict. It was bullion’s first advance in six sessions. Silver rose 2.4% to finish at $31.10 an ounce.

The Biden administration will allow Ukraine to use long-range US missiles to strike deeper in Russia, adding a new and potentially dangerous element to the conflict. The change in policy comes in response to Russia’s deployment of North Korean ground troops.

Benchmark 10-year Treasury yields pulled back as investors shifted toward the perceived safety of government bonds. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking with yields, the dollar shed 0.4% against major rivals, it second down session after hitting a one-year high last Thursday. A weaker dollar supports gold and other commodities by making them less expensive in other currencies, boosting demand overseas.

Oil prices jumped more than 3% on the Biden missile decision, which would enable Ukraine to reach crude production facilities in Russia, a major oil producer. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Platinum and palladium rose 2.9% and 6.7%, respectively.

At the New York spot close: gold surged $44.90 to $2,610.60; silver rose 72 cents to $3.10; platinum picked up $27.40 to $967.20; and palladium jumped $64.90 to $1,008.20 an ounce.