Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold dropped 0.4% to close at $3,305 after weak but better-than-expected US economic data boosted Treasury yields and the dollar, pressuring alternative store of value. Bullion still gained 6% for the month, propelled by safe-haven inflows because of tariff uncertainty. Silver shed 2.2% for the day and 5.6% for the month to finish at $32.52 an ounce.

US GDP contracted for the first time since 2022, slipping 0.3% in Q1 after rising 2.4% the previous quarter. While the headline number was softer than forecasts, much of the blame fell to a huge upsurge in imports ahead of the imposition of Trump tariffs. Large trade deficits directly diminish GDP.

The PCE index for March showed inflation increased by 2.3%, down from 2.7% in February. Annual core inflation eased from 3% in February to 2.6% in March. Notably, the data recedes the effect of tariffs on consumer prices. The PCE index is the Fed's preferred inflation gauge.

ADP reported private payrolls added just 62,000 new jobs last month, the fewest since last July, as employers pulled back because of uncertainty about trade policies. Friday's federal nonfarm payrolls report will give a more authoritative look and the state of the labor market.

All three major US equity indexes retreated on the soft GDP data while yields and the dollar advanced, mostly because it was not as weak as expected. Goldman Scahs and JP Morgan has forecast contractions of 0.8% and 1.75%, respectively.

The dollar added 0.2%, pressuring gold by making it pricier overseas. Benchmark 10-year Treasury yields crept up toward 4.2%, increasing the opportunity cost for holding bullion instead of bonds for safety.

Platinum lost 1.2% for a monthly decline of 4.6%. Palladium rose 0.2% but still lost 5% in April.

At the New York spot close: gold slid $13.80 to $3,305; silver shed 74 cents to $32.53; platinum dropped $14.90 to $963.80; and palladium picked up $1.60 to $945 an ounce.