Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.4% to close at $2,007 after upbeat US data lifted yields and the dollar, pressuring alternative stores of value.

New York's Empire State index of business conditions staged a dramatic rebound in April, beating forecasts and jumping into positive territory for the first time in five months. Despite its relative strength, the regional manufacturing gauge showed employment and hours worked both declined for the third straight month.

The dollar rose 0.5% as the data strengthened speculation that the Fed will hike rates by a quarter-point in May. Fed fund futures trading is pricing in an 86% likelihood, followed by a 67% chance of a pause in June. Higher rates lift the buck by attracting Forex investment seeking yield, pressuring gold in turn by making it pricier in other currencies.

Benchmark 10-year Treasury yields edged up over 3.6% on the hawkish rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals were mixed, with silver sliding 1.5% while platinum and palladium rose 0.5% and 4.3%, respectively.

At the Comex close: June gold dropped $8.80 to $2,007; May silver lost 37 cents to $25.20; July platinum picked up $5.60 to $1,059.60; and June palladium climbed $64.20 to $1,560.50 an ounce.