Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.8% to close above $1,973 as worries about the Ukraine war and inflation trumped an increasingly hawkish Fed to stoke demand for safe havens. It was the metal's highest finish in nearly a week.

Four weeks into its unprovoked invasion of Ukraine, the Russian military has intensified its campaign of attrition, bombarding civilian infrastructure and reducing cities to rubble. Ukrainian resistance, however, remains steadfast.

President Biden will meet with NATO allies and EU leaders on Thursday to discuss next steps, including additional sanctions against Moscow. The US has issued warnings about Russian reprisals such as possible cyberattacks here at home.

The geopolitical uncertainty helped fuel risk-off sentiment on Wall Street, knocking all three major indexes down 1.3%.

Benchmark 10-year Treasury yields retreated under 2.3% as investors shifted back toward safe havens. Lower yields support higher gold prices by decreasing the opportunity cost for holding it instead of bonds.

Gold gains came despite an increasingly hawkish Fed as another official called for aggressive monetary tightening. Cleveland Fed President Loretta Mester said today the central bank will have to raise interest rates by half-point increments.

Higher interest rates typically weigh on gold and other commodities by lifting the dollar, which makes them more expensive in other currencies. But the reason for higher rates—runaway inflation—is also a major driver behind rising demand for gold as a hedge against loss of purchasing power.

The other precious metals were mostly higher, with silver and palladium adding 1.1% and 1.7%, respectively, while platinum slipped 0.4%.

At the Comex close: April gold gained $15.80 to $1,937.30; May silver climbed 29 cents to $25.19; April platinum dropped $4.10 to $1,021; and June palladium picked up $42.80 to $2,519.30 an ounce.