AGE Daily Gold Update

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

8/23/2023: Gold has best day in three weeks

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged 1.2% to close above $1,948 after weak US and Eurozone data pressured sovereign debt yields and the dollar, boosting alternative assets. It was the metal's fourth straight winning session and biggest daily gain in more than three weeks.

The S&P Global composite PMI index showed the US economy slowing nearly to the point of stagnation in August. The services sector, which employs nearly two in three Americans, dropped to a six-month low of 51, where 50 is the point of zero grow. Manufacturing, meanwhile, fell deeper into contraction at 47.

A similar survey for Europe, the HCOB composite PMI index, showed the Eurozone falling deeper into contraction at 47, its lowest reading since November 2020. The composite figure for Germany, Europe's biggest and most dynamic economy, dropped to the lowest level since May 2020. The UK posted similarly weak numbers.

Adding to the softer US outlook, the BLS announced that the US added 306,000 fewer jobs than previously reported for 12 months through March, for an average of 25,500 fewer per month.

US and European yields retreated on the soft data. German bunds and British gilts pulled back, and benchmark 10-year Treasury yields followed suit, falling under 4.2% from the 16-year high achieved earlier this week.

Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar slipped 0.2% against major rivals, supporting gold and other commodities by making them cheaper in other currencies.

The other precious metals were also higher, with silver jumping 4% while platinum and palladium rose 1.4% and 1.3%, respectively.

At the Comex close: December gold surged $22.10 to $1,948.10; September silver jumped 94 cents to $24.39; October platinum picked up $12.70 to $938.20; and September palladium advanced $16.60 to $1,281.40 an ounce.