Gold News & Info

Source:Dana Samuelson, American Gold Exchange

AustinGold rose 0.5% to close the New York session at $1,839.50, trading inversely to the dollar and the 10-year US Treasury yield, which fell 0.25% and .004 basis points respectively.

In Senate Finance Committee hearing testimony, incoming Treasury Secretary Janet Yellen sought backing for President Elect Biden's $1.9 trillion covid-19 relief plan. While Senate Republicans voiced concerns over both the size and the scope of the proposal, nominee Yellen countered that now was the time to be bold, despite the existing US debt burden.

"There is an advantage to funding the debt especially when interest rates are very low by issuing long-term debt," Yellen said. Yellen further state she believed low yields are here to stay. "I believe the future is likely to bring low interest rates for a long time."

Gold benefits in a low yield environment, especially when real yields are negative when inflation is factored in. Despite a rebound in the 10-year treasury yield over the last month, real yields in the US remain negative today, giving gold a boost over other traditional safe-haven assets such as bonds.

At the Comex close: February gold rose $10.20 to $1,840.40; March silver gained 45 cents to $25.32; April platinum edged up $1.00 to $1,090.90; and March palladium fell $35.10 to $2,360.00 an ounce.