AGE Daily Gold Update

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

12/5/2024: Gold falls on yields, France

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold fell 1% to close below $2,627 on as Treasury yields rose and France’s political situation stabilized, reducing demand for safe-haven assets. Silver dropped 1.2% to finish at $31.13 an ounce.

French President Emmanuel Macron moved quickly to appoint a new Prime Minister after Michel Barnier resigned following a vote of no confidence. Barmier had attempted to push through an austerity budget via extra-constitutional means.

Yields on French government bonds stabilized, narrowing the gap with German bunds to the lowest in nearly two weeks, as the markets applauded the decisive action.

Closer to home, US first-time jobless claims rose slightly last week, suggesting the labor market is cooling at a measured pace. Tomorrow’s release of the government’s nonfarm payrolls report will provide a clearer picture of US employment ahead of the Fed’s meeting on monetary policy later this month.

The odds of a quarter-point rate cut fell to 70% from 78% yesterday as Fed fund futures traders digested Jerome Powell’s remarks earlier in the week. The Fed chair said the economy is faring better than expected and warrants a cautious approach to further easing.

Platinum and palladium dropped 1% and 1.8%, respectively.

At the New York spot close: gold fell $27.20 to $2,626.60; silver slid 37 cents to $31.13; platinum retreated by (.30 to $939.65; and palladium shed $17.80 to $971 an ounce.