Gold powers to a new record with spot prices hitting $2,110.80 an ounce early Monday amid haven demand linked to the war between Israel and Hamas and speculation that the Federal Reserve will begin cutting interest rates next year. The yellow metal then receded below the $2,100 on profit taking. Continue reading →
Gold steady after second straight monthly rally amid heightened speculation that the Federal Reserve’s interest rate increase cycle has peaked and that the central bank will either hold or cut rates going forward. The yellow metal has also set its sights on its third straight weekly gain. Continue reading →
Trading was also expected to be light this week going into the U.S. Thanksgiving holiday on Thursday. Last week, gold posted its first weekly gain in three on interest rate speculation and, subsequently, a weaker dollar and Treasury yields. Gold comes under pressure when interest rates, the dollar and Treasury yields are strong, and last week was the dollar’s worst in four months.
Front-month gold futures rose 2.4% last week to settle at $1,984.70 an ounce on Comex, though the December contract slipped 0.1% Friday. Bullion gained 6.9% in October after falling 5.1% in September and dropping 2.2% in August. The metal is up 8.7% in 2023. The December contract is currently down $12.00 (-0.60%) an ounce to $1972.70 and the DG spot price is $1972.20.
CME FedWatch Tool shows that 99.8% of the investors it tracks are betting that the Fed will keep its federal funds rate unchanged in December, a shift from 90.9% a week ago, and .2% of the investors think the Fed will lower the rates by 25 basis points. The Fed has boosted interest rates by 5.25 percentage points since March 2022 to curb inflation to the 2% level. The Fed kept interest rates unchanged at 5.25% to 5.50% earlier this month. The central bank has raised interest rates only once since May.
Minutes of the last Fed policy meeting in November are due out Tuesday and will be closely watched by investors for further signals on monetary policy.
In other economic news, U.S. weekly initial jobless claims come out Wednesday, early because of the Thanksgiving holiday. Final consumer sentiment data for November are also due out Wednesday. U.S. manufacturing PMI comes out Friday. The U.S. retail holiday sales season, which is often used as an economic indicator, begins at the end of this week with Black Friday.
Separately, gold came under some pressure following a deal between Israel and Hamas for the group to release hostages taken during the Oct. 7 attack on Israel. This is likely to trigger a multiday pause in the conflict. That’s bearish for gold, a haven asset in times of geopolitical uncertainty.
December silver futures increased 7.1% last week to settle at $23.85 an ounce on Comex. March is now the most-active contract, and it fell 0.3% Friday to $24.20 Friday. Silver increased 2.2% last month after decreasing 9.5% in September and slipping 0.6% in August. It’s down 0.7% in 2023. The December contract is currently down $0.257 (-1.08%) an ounce to $23.595 and the DG spot price is $23.48.
Spot palladium surged 9.2% last week to $1,071.00 an ounce, and it advanced 1.6% Friday. Palladium dropped 10% in October after rising 3% in September and sliding 5.3% in August. Palladium has plummeted 41% so far this year. Currently, the DG spot price is up $27.10 an ounce to $1096.00.
Spot platinum rose 6.4% last week to $905.10 an ounce and edged up 70 cents Friday. Platinum gained 3.5% in October after declining 6.6% last month and advancing 1.7% in August. Platinum is down 15% in 2023. The DG spot price is currently up $10.10 an ounce to $913.80.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.
Gold yo-yos on inflation data, hitting a one-week high early Wednesday after the dollar and Treasury yields weakened following yesterday’s inflation report. The yellow metal started to waffle, dipping on profit-taking, then regaining some ground on this morning’s inflation report. The small boost was followed by a shallow dip caused by further profit-taking. Continue reading →
Gold falls early Friday on Federal Reserve Chairman Jerome Powell’s hawkish comments. The yellow metal is heading for a second consecutive weekly decline, after the Fed chair increased speculation that the central bank may not be done yet with its series of interest rate hikes. Palladium tumbled to its lowest level since 2018. Continue reading →
Dallas (October 31, 2023) Dillon Gage, the global leader in physical precious metals trading and technology attains its latest milestone, The Responsible Jewellery Council (RJC) certification against RJC’s 2019 Code of Practices (COP). This certification, issued for three years, underscores Dillon Gage’s unwavering dedication to responsible jewelry practices and its commitment to promoting ethical, social and environmental responsibility across its operations. Download press release Continue reading →
Gold poised for a third consecutive weekly gain Friday as the conflict in the Middle East propped up prices while expectations that the Federal Reserve would leave interest rates high for some time pressured them. The yellow metal drifted down after the release of this morning’s inflation data. Continue reading →
Gold steady below $2,000 threshold early Wednesday, sticking to elevation from the conflict in the Middle East and softer U.S. Treasury yields, but pressured by diplomatic efforts to keep the Israel-Hamas war from spreading and expectations that the Federal Reserve will keep interest rates high. Continue reading →
Gold retreats from a brief Morning peak that was powered by jobs data. The DG spot rose to $1830 on the news, then fell back $10 an ounce. Investors now await the release of the monthly U.S. jobs report for September on Friday for further direction. Palladium traded at a five-year low. Continue reading →
Dillon Gage Refinery has moved to a larger facility and we’ve updated our systems. So, bigger and better is the only way to describe the change. This means even faster turnaround times. While our industry-leading customer service on everything from low-grade powder to karat gold remains the same. Continue reading →
Gold recovers from three-week lows early Friday,iday aided by the dollar’s retreat after better-than-expected Chinese data. Traders now turn their eyes to next week’s meeting of the Federal Reserve for guidance. It’s widely expected that the Fed will leave interest rates unchanged. Continue reading →
Gold relatively steady, tipping up slightly early Monday, shrugging off the comments from Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde last week that interest rates should remain high, bolstered by the possibility of upcoming weak economic reports. Continue reading →
Gold regained ground on key inflation data that came in at low, yet expected level. While the yellow metal reclaimed the turf above the $1950 an ounce level, it looks headed for its biggest weekly decline in five weeks, after the dollar and Treasury yields rose on strong economic reports. Continue reading →