Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rebounded 0.6% to close near $2,020 as falling yields and a weaker dollar sparked bargain-hunting after a 2.3% selloff over the prior two sessions.

China's economy grew by an unexpected 4.5% in Q1, the fastest rate in a year, suggesting that the world's second-largest economy is on the rebound after its devastating zero-Covid closures. Retail sales were especially strong, increasing 10.6% and reaching a two-year high.

The dollar fell 0.3% against rivals as commodity-linked currencies like the Aussie and New Zealand dollar rallied behind the upbeat China growth news. A falling dollar lifts gold and other commodities by making them less expensive in other currencies, boosting demand overseas.

Adding to dollar weakness is slowing inflation in the US. The CPI for March fell to annualized 5%, the lowest in 18 months, and wholesale inflation softened even faster, down to 2.7% in March. As a result, the Fed is expected to end and perhaps reverse its rate-hike cycle in the coming months.

Benchmark 10-year Treasury yields slid back under 3.6%, supporting gold by decreasing the opportunity cost for holding instead of bonds as a safe-haven asset.

After reaching its second-highest close ever last week at $2,055, metal had fallen 2.3% since Friday on profit-taking driven by hawkish comments from several Fed members. Prices rebounded today as traders saw the selloff as overdone.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium climbed 3.6% and 5.3%, respectively.

At the Comex close: June gold gained $12.70 to $2,019.70; May silver rose 18 cents to $25.26; July platinum picked up $37.70 to $1,097.30; and June palladium advanced $82.40 to $1,642.90 an ounce.