Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close at a two-week high near $1,731 as disappointing US economic data and bets on a dovish Fed lifted demand for alternative stores of value. It was the metal's fourth winning session in the past five.

Retail sales slumped 3% in February as cold weather swept parts of the nation and Federal pandemic relief lapsed. Retailers had posted a 7.6% rise in January after the government distributed $600 stimulus checks, a sign that the economy is still on life support because of Covid-19. Consumer spending accounts for roughly 70% of GDP.

Manufacturing output also tumbled in February, losing 3.1% after a rise of 1.2% the month before. Industrial capacity utilization fell to the lowest rate since October, in part because of cold weather.

Risk appetite receded with the downbeat data, pushing the Dow 0.4% lower while the S&P 500 and Nasdaq slid 0.2%. Meanwhile, the Treasury's auction of 20-year notes met with more demand than expected, capping yields and signaling solid ongoing appetite for safe havens.

The Fed began its two-day meeting with market participants widely expecting monetary to policy to remain extremely dovish. Despite signs of rising inflation, Fed Chair Jerome Powell and other central bankers have been resolute that near-zero interest rates and quantitative easing will continue for years to come. Traders will nonetheless scour tomorrow's post-meeting statement for any hint of change.

Loose Fed policies are bullish for gold because they make money cheaper, boosting demand for the metal as a long-term store of value.

The other precious metals were mixed, with silver sliding 1.1% while platinum added 0.8% and palladium surged 5% on supply uncertainty.

At the Comex close: April delivery gold added $1.70, to $1,730.90; May silver dropped 29 cents to $26; April platinum picked up $9.60 to 1,219.10; and June palladium surged $118.20 to $2,491.90 an ounce, the highest close since January.