AGE Daily Gold Update

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

12/11/2024: Gold reclaims $2,700 after CPI

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 1.3% to close near $2,734 after benign CPI data solidified expectations that the Fed will reduce interest rates next week. Silver added 0.6% to finish at $32.56 an ounce.

The consumer price index for November rose 0.3%, matching forecasts and nudging the 12-month inflation rate to 2.7% from 2.6% in October. The so-called core CPI, excluding food and energy costs, also matched forecasts by rising 0.3% for the month. The 12-month core rate remained unchanged at 3.3%.

Notably, the biggest driver of inflation over the past three years—housing—showed signs of weakening, and that’s music to Fed ears. Rents and related measures of home prices climbed just 0.2% in November, the smallest rise since 2021, and the 12-month increase fell to 4.7% from 4.9% in October.

The net-positive CPI print almost guarantees another quarter-point rate cut when the Fed meets next week. Fed fund futures traders put the odds at 96%, up from 89% before the release and 78% one week ago.

Benchmark 10-year Treasury yields edged slightly lower, boosting gold by decreasing the opportunity costs for holding it instead of bonds for safety.

Platinum slid 0.6% while palladium rose 2.9%.

At the New York spot close: gold gained $36.20 to $2,733.80; silver rose 20 cents to $32.56; platinum shed %.80 to $939.50; and palladium rose $28.10 to $1,002.70 an ounce.