AGE Daily Gold Update

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

12/2/2024: Gold slides on dollar rally

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slid 0.8% to close under $2,635 as the dollar rallied on improved US data, political instability in France, and new tariff threats from President-elect Donald Trump. Bullion fell 3.9% in November as the dollar strengthened following Trump’s election. Silver slid 0.8% to finish at $30.45 an ounce after plunging 7.2% in November.

Reversing his longstanding preference for a weaker dollar, Trump made a push for a stronger dollar over the weekend by threatening to levy 100% tariffs on BRICS nations (including Brazil, Russia, India and China) if they pursue currency alternatives to the dollar for trade.

The dollar jumped 0.7% on the aggressive tariff plan and a faltering euro after a vote of no confidence threatened to collapse the Barnier government of France. A weaker dollar weighs on gold by making it pricier in other currencies, undercutting overseas demand.

Adding to dollar strength, data from the ISM and S&P Global showed gains in US manufacturing growth in November, although the indexes remained in contraction.

Despite its retreat in November, gold has risen around 30% this year and remains supported by robust central bank purchasing, the prospect of lower interest rates, ongoing geopolitical turmoil, and expectations of returning retail demand in China after the PCOB launched a new financial stimulus.

Platinum dropped 0.4% while palladium rose 0.5%.

At the New York spot close: gold fell $22.10 to $2,634.90; silver slid 24 cents to $30.45; platinum shed 3.80 to $945.65; and palladium picked up $5.20 to $991.90 an ounce.