AGE Daily Gold Update

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

12/3/2024: Gold gains on haven demand

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.4% to close near $2,645 as Treasury yields and the dollar receded despite upbeat US jobs data, fueled by safe-haven inflows from growing instability in the French government. Silver rose 2.1% to finish at $31.08 an ounce.

The Labor Department reported job openings rose in October to the highest level in five months, with more workers quitting jobs to take another. The rising JOLTS data signals employment is recovering after a soft period over the summer. More information on the labor market will come Friday with the government’s monthly nonfarm payrolls report.

While recent reports have indicated solid momentum in the economy, the odds of another rate cut this month are increasing. Fed fund future traders now see a 72% likelihood of a quarter-point reduction, up from 62% yesterday.

Adding to rate-cut bets, two Fed policymakers said yesterday that inflation is still on the way to the central bank’s 2% target despite the mild uptick in October.

Safe-haven demand for bullion was further driven by increasing certainty that French PM Michel Barnier will be subject to a vote of no confidence that is likely to topple his government. Barnier pushed through a 2025 austerity budget without parliamentary approval, drawing immediate backlash from both the left and right.

Benchmark 10-year Treasury yields edged down to a one-month low as investors turned towards safety. The dollar slipped 0.3% on profit-taking from yesterday’s 0.7% rise. Lower yields lift gold by decreasing the opportunity costs for holding it instead of bonds; a weaker dollar makes it cheaper overseas.

Platinum added 0.9% while palladium subtracted 0.8%.

At the New York spot close: gold gained $9.80 to $2,644.70; silver climbed 63 cents to $31.08; platinum picked up $8.20 to $954.10; and palladium slid $8.20 to $983.70 an ounce.