AGE Daily Gold Update

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

12/9/2024: Gold rallies on Syria, China

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot rallied gained 1% to close at a two-week high near $2,665 as geopolitical turmoil in Syria drove safe-haven inflows despite small upticks in the dollar. A resumption in purchases by China’s central bank also drove bullion prices. Silver jumped 3.3% to finish at $32.22 an ounce.

Syrian rebels seized the capital city of Damascus over the weekend, ending 13 years of civil war and the brutal dictatorship of President Bashar al-Assad, who fled to Russia. But the outcome of this regime change remains uncertain, raising the possibility of deeper instability in the troubled region.

The People’s Bank of China reported that it will resume buying gold bullion for its currency reserves after a six-month hiatus. Record-high gold purchases by China and other central banks were a major driver of gold’s rally to a series of all-time highs over the past 18 months.

Adding to bullion bullishness, Fed fund futures traders project an 86% likelihood of another quarter-point rate reduction from the Fed when it meets next week on monetary policy. Lower rates pressure bond yields and the dollar, lifting alternative stores of value.

The dollar edged up 0.1% against major rivals as traders anticipate the latest CPI data, scheduled for release this week. If inflation comes in higher than forecast the Fed may signal caution about further rate cuts, which would support the buck.

Platinum and palladium rose 1.4% and 2.9%, respectively.

At the New York spot close: gold gained $26.30 to $2,664.90; silver climbed $1,03 to $32.22; platinum picked up $12.60 to $942.60; and palladium advanced $28.30 to $988.60 an ounce.