Gold up 1.9% Monday as Brent drops 5%: 10g bar from $1,297
In short
- Gold rose 1.9% on Monday to about $3,948 an ounce as Brent crude fell more than 5% and the 10-year Treasury yield eased to 4.909%.
- Wall Street ended mixed: Nasdaq Composite −1.1%, S&P 500 −0.5%, Dow Jones +0.4%.
- At 7:40 a.m. Sofia time gold is $3,937 an ounce, and the cheapest 10-gram bar costs $1,297, 2.5% above the spot price.
Gold bounced on Monday because oil got cheaper and bond yields fell. At 7:40 a.m. Sofia time an ounce of gold costs $3,937 (−0.8% in 24 hours) and Bitcoin $76,852.
What happened
According to the Rio Times, spot gold closed Monday at $3,948 an ounce (+1.87%). The drivers were safe-haven demand, lower Treasury yields and a slightly weaker dollar. The metal is still about 28% below its late-January peak near $5,500.
Brent crude fell 5.38% to $109.58 a barrel and WTI 1.61% to $100.12. The 10-year Treasury yield is 4.909%, down from 5.045% on October 28. The dollar index stands at 101.805.
Equities were mixed. The Nasdaq Composite fell 1.07% to 25,164, which is 8.8% below its October 6 peak. The S&P 500 lost 0.51% to close at 7,541, while the Dow Jones rose 0.41% to 51,984. The VIX fear gauge is at 21.15 (+8.9%).
The US midterm elections take place today. On Wednesday come ADP jobs data, the ISM survey and the Treasury’s borrowing announcement.
What it means for you
The math: at a spot price of $3,937 an ounce, 10 grams of gold are worth about $1,266. The cheapest 10-gram bar in the US (BGASC, $1,296.79) costs $31 more, or 2.5% above spot. You pay that gap the moment you buy.
$1,000 buys about 7.9 grams of gold at spot. At the price of a 10-gram bar it buys about 7.7 grams. For a one-ounce American Eagle, the cheapest dealer (Gainesville Coins) asks $4,008.32, or 1.8% over spot.
See also: live US gold prices and the gold calculator.
Bottom line
Gold reacted to oil and yields rather than to equities: when both fell, the metal rose 1.9%. It remains about 28% below its January peak, and the US elections and data follow this week.
Sources: The Rio Times · HawkValue data at 7:40 a.m.
Gold prices at US dealers live →
For information only. This is not investment advice.
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