Current Prices: Gold USD 2645.16/oz (AUD 3915.44) And Silver USD 31.67/oz (AUD 46.88)
Gold Price eased on Monday as the U.S. dollar held strong and recent employment data prompted investors to scale back expectations of a big rate cut from the Federal Reserve in November. Spot gold fell by 0.40% trading near $US2,642.40 and silver fell by 1.60% trading near $US31.66 an ounce at the US close.
US share markets fell on Monday, pressured by rising US bond yields as markets recalibrated expectations for US Federal Reserve interest rate cuts, while rising conflict in the Middle East kept traders on the sidelines. The Dow Jones index fell by 398.5 points or 0.9%, the S&P 500 index dipped 1% and the Nasdaq index shed 214 points or 1.2%.
US government bond yields climbed on Monday as traders bet against another jumbo US rate cut after Friday’s strong US jobs report. The US 10-year Treasury yield rose by 4 points to 4.03%, near its highest level since July 31. The US 2-year Treasury yield lifted 6 points to 3.99% after reaching its highest since August 19 at 4.027% earlier in the session.
Currencies were mixed against the US dollar in European and US trade. The Aussie dollar slid from US68.06 cents to US67.53 cents and was near US67.55 cents at the US close.
In US economic data, total consumer credit grew by $US8.9 billion in August (survey: $US12 billion). Expectations for a Fed rate cut of 25 basis points (bps) at the central bank’s November meeting stand at 84.6%, with the market pricing in a 15.4% chance it will hold rates steady, according to CME’s FedWatch Tool.
Australian gold prices up by 0.14% (+5.28 per oz) to AUD 3911 at the US close.
Australian silver prices fell by 1.07% (-0.51 per oz) to AUD 46.89 at the US close.
The current Gold and Silver Ratio is 83.49
Current AUD/USD is 0.6754
Gold (Yellow) vs Silver (White) vs ASX200 (Green) YTD Return
Gold (Yellow) vs Silver (White) vs ASX200 (Green) Rolling 12 Month Returns
By: William Tao Guardian Gold Precious Metal Analyst
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