Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $1,806 as the Dow and the dollar rebounded on upbeat data and Fed Chair Jerome Powell's testimony before Congress, pressuring alternative stores of value.

Speaking before the Senate Banking Committee, Powell expressed confidence in the economy and pushed back on concerns that faster growth will trigger sharply higher inflation. Asserting that the economy is still "a long way from our employment and inflation goals," the Fed Chair promised quantitative easing and near-zero interest rates will continue for the foreseeable future.

Wall Street bounced from deep losses on Powell's assurances that easy money policies will remain in place. The Dow surged from a loss of 4% early in the session to gain as much as 0.3%, its biggest comeback in two months. Gold retreated from an intraday high above $1,815 as risk appetite was rekindled.

Supporting the rebound in equities, consumer confidence climbed to a three-month high in February as many Americans received $600 stimulus checks and the vaccine rollout accelerated.

The dollar rose from six-week lows against major rivals on the upbeat outlook, weighing on gold and other commodities by making them pricier in other currencies.

Gold's dip was backstopped by falling Treasury yields after Powell dismissed worries that higher inflation would push the central bank to raise interest rates. Lower yields support gold by reducing the opportunity cost for holding it instead on bonds as an inflation hedge and safe-haven asset.

The other precious metals were also lower, with silver dropping 1.4% while platinum and palladium fell 3.3% and 2.4%, respectively.

At the Comex close: April gold dipped $2.50 to $1,805.90; March silver lost 40 cents to $27.69; April platinum fell $42.60 to $1,239.70; March palladium dropped $57 to $2,335.10 an ounce.