AGE Daily Gold Update

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

1/4/2022: Gold gains on soft ISM data

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.8% to close near $1,815 as weak US factory data and rising covid cases boosted demand for safe havens despite an uptick in yields and the dollar.

US manufacturing grew at the slowest pace in 11 months in December, according to the ISM index, as companies struggled with shortages of materials. The surge of new covid infections due to the omicron variant is creating further headwinds for the sector as employees miss work because of illness.

New US cases topped 1 million per day on Monday, more than doubling the daily total just four days before, as the hyper-transmissible omicron variants sweeps the nation. Hospitalizations for covid have risen 41% in the past two weeks, according to government data.

Risk appetite wavered in the face of omicron uncertainty, with the Dow picking up 0.6% while the S&P 500 was little-changed, and the tech-heavy Nasdaq tumbled 1.3%. Benchmark 10-year Treasury yields inched up slightly.

Limiting gold’s rise, the dollar edged up less than 0.1% as traders speculated that the Fed may raise interest rates as soon as March and up to three times next year. Higher rates lift the buck by attracting Forex investors chasing yield, pressuring gold in turn by making it pricier in other currencies.

The other precious metals were also higher, with silver rising 1.1% while platinum and palladium picked up 1.8% and 1.9%, respectively.

At the Comex close: February gold gained $14.50 to $1,814.60; March silver rose 25 cents to $23.06; April platinum climbed $17.20 to $971.20; and March palladium added $33.70, to $1,859.70 an ounce.