AGE Daily Gold Update

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

12/10/2024: Gold jumps to 2-week high

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold jumped 1.2% to close near $2,698 as instability in the Middle East drove safe-haven inflows ahead of tomorrow’s release of the latest CPI. It was bullion’s highest finish in two weeks. Silver added 0.5% to close at $32.36 an ounce.

Geopolitics continue to be the main driver of the gold market, with investors insuring against the uncertainty of what come next in Syria after the brutal Assad regime was toppled over the weekend. Mohammed al-Bashir, a little-known rebel figure, said today he would lead as the interim government. What this means for the highly combustible Middle East remains to be seen.

Gold is also benefiting from a global easing trend among major central banks. The ECB, Bank of Canada, and Swiss National Bank are all expected to cut interest rates this week. The Fed is nearly certain to cut interest rates next week, with the odds of a quarter-point reduction at 86% according to Fed fund future trading.

Tomorrow’s release of the latest consumer price index should help clarify the Fed’s attitude toward further easing in 2025. While further rate cuts are anticipated, their size and frequency are an open question.

The People’s Bank of China announced looser monetary policies and active stimulus for its beleaguered economy. As the biggest gold consumer in the world, China’s increase in financial stimulus is expected to stoke gold consumption ahead of the Lunar New Year, a traditional season for buying jewelry.

Platinum and palladium slid 0.7% and 1.3%, respectively.

At the New York spot close: gold gained $32.70 to $2,697.60; silver rose 15 cents to $32.36; platinum slid $6.60 to $943.60; and palladium retreat by $12.40 to $976.20 and ounce.