Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $2,020 as pressure from upbeat US data and higher Treasury yields was nearly offset by safe-haven inflows from escalating tensions in the Middle East.

The economy grew steadily in February, according to a pair of S&P surveys. The flash US manufacturing PMI jumped to a 17-month high of 51.5, fueled by the biggest rise in new orders in 18 months. The flash services PMI inched down slightly to 51.3 but held above 50, the level that signifies growth.

First-time jobless claims fell by 5,000 to a five-week low of 201,000, well-under consensus forecasts of 216,000, suggesting that the labor market is not slowing down.

Benchmark 10-year Treasury yields climbed to a fresh three-month high as traders anticipate the Fed will delay rate cuts until June. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds for safety.

Gold prices held up remarkably well in the face of higher yields as concerns mount about the conflict in the Middle East. Iran-backed Houthi militants have introduced a “submarine weapon,” according to one the group’s leaders, as it steps up attacked on shipping int the Red Sea. Israel has intensified the war with Hamas by bombarding Rafah in the south of Gaza.

Comments from Fed Vice Chair Philip Jefferson also helped the metal. The Fed’s number two official said he expects “to begin dialing back our policy restraint later this year,” giving solace to traders who see lower rates as a pathway to much higher gold prices.

The other precious metals were mixed, with silver sliding 0.4% while platinum and palladium rose 1.8% and 2.1%, respectively.

At the New York spot close: gold dipped $2.60 to $2,019.70; silver shed 9 cents to $22.78; platinum picked up $15.90 to $905.50; and p0alladium rose $20.30 to $970.20 an ounce.