AGE Daily Gold Update

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

12/4/2024: Gold gains on US data, geopolitics

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose for the fourth time in five sessions, adding 0.3% to close near $2,654 after disappointing US data and rising geopolitical uncertainty undercut Treasury yields and the dollar, boosting alternative assets. Silver climbed 1.4% to finish above $31.50 an ounce.

The US services sector slowed in November, with ISM index slipping to 52.1% from 56% in October, where any reading under 50% indicates contraction. Service industries constitute 77% of the economy and employ most Americans.

Reinforcing the slower-growth narrative, the Fed’s Beige Book found only slight expansion in most regions in October, with three districts flat or slightly declining.

Growth in private payrolls also disappointed. According to ADP, 146,000 new jobs were added in October, missing forecasts of 150,000. Friday’s nonfarm payrolls release will offer a more authoritative reading on the labor market.

Benchmark 10-year Treasury yields fell under 4.2% to the lowest level since October as investors shifted toward safety. Softer US data combined with geopolitical uncertainty after French PM barnier received a vote of no confidence, almost certainly toppling his government. Falling yields boost gold by reducing the opportunity cost for holding it instead of bonds.

Tracking with yields, the dollar slipped slightly, supporting commodities like gold by making them cheaper in other currencies.

Platinum fell 1.7% while palladium rose 0.5%.

At the New York spot close: gold gained $9.10 to $2,653.80; silver jumped 43 cents to $31.51; platinum shed $15.80 to $940; and palladium picked up $5.10 to $988.180 an ounce.