Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold retreated 1.1% to close under $1,923 on profit-taking after upbeat US data and the renewed prospect of talks between Russia and Ukraine sparked a rebound in risk appetite.

With the world lining up to punish Russia with sanctions for its unprovoked invasion of Ukraine, and with Russia intensifying its onslaught, representatives of both nations signaled openness to resume negotiations.

Whether or not talks are a feint by Moscow, global markets breathed a sigh of relief at the prospect of a diplomatic solution. The Dow and S&P 500 rebounded 1.8% while the Nasdaq added 1.6% and the Global Dow 1%.

Adding to risk sentiment, ADP said private payrolls added 475,000 new jobs in February and revisions to January showed an increase of 509,000 rather than the decrease of 301,000 originally reported.

With the job market gaining strength and inflation at a 40-year high, Fed Chair Jerome Powell told Congress today that the FOMC will raise interest rates by a quarter-point when it meets later this month, rather than the half-point increase the market was expecting before the Ukraine invasion.

Given the uncertainties surrounding the Ukraine war, monetary policy must "be nimble," Powell said.

Benchmark 10-year Treasury yields crept back toward 1.9% on the rekindled risk sentiment. Rising yields pressure gold by increasing the opportunity cost for hiding it instead of bonds as a safe-haven asset.

The other precious metals were mixed. Silver fell 1.4% while platinum added 1.5% and palladium jumped 5% on worries about supply disruptions out of Russia, the world's largest producer.

At the Comex close: April gold dropped $21.50 to $1,922.30; May silver slid 35 cents to $25.19; April platinum added $16.10, to $1,068; and June palladium surged $127.10 to $2,664.90 an ounce.