Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.1% to close under $2,004 after Friday's solid US jobs report raised the odds of a May rate hike, lifting yields and the dollar while undercutting alternative stores of value.

The US economy added 236,000 jobs in March, the government reported on Friday, and the unemployment rate inched down to 3.5%. Following revised gains of 326,000 in February and 472,000 in January, the increase in hiring was the smallest in more than two years but still more than the Fed would like to see.

The odds of rate increase in May jumped following the jobs print, which was released when markets were closed for Good Friday. Fed funds futures traders now see a 71% likelihood that the Fed will hike by a quarter-point at its next meeting, up from around 40% the day before.

Benchmark 10-year Treasury yields climbed back above 3.4% on the hawkish rate view, weighing on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking higher with yield, the dollar picked up 0.5% against major rivals while the yen sank after Japan's new central bank governor voiced support for continuing ultra-loose monetary policies. A rising dollar weighs on gold and other commodities by making them more expensive in other currencies, limiting overseas demand.

The other precious metals were also lower, with silver sliding 0.7% while platinum and palladium dropped 1.4% and 3.8%, respectively.

At the Comex close: June gold fell $22.60 to $2,003.80; May silver slid 18 cents to $24.91; July platinum dropped $13.90 to $1,002.90; and June palladium shed $54.80 to $1,407.60 an ounce.