Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close near $2,043 as global economic concerns, US banking stress, and the looming debt-ceiling showdown boosted demand for safe havens. It was the metal's fifth winning session in the past six.

China's imports fell 7.9% in April and its exports slowed sharply, suggesting that its post-Covid recovery is sputtering. While demand for services has risen since the end of draconian no-Covid lockdowns, domestic and foreign appetite for goods has remained feeble, adding to worries about global growth.

The NFIB reported today that small business confidence in the US has tumbled to more than a 10-year low. Higher interest rates, tightening credit conditions, and falling consumer sentiment are contributing to pessimism about the near-term economic outlook among small business owners.

The Fed's quarterly loan survey revealed that banks had tightened credit during the first three months of the year and expect the tightening trend to continue through 2023. Consumer, auto, commercial, and real estate loans were all more expensive and difficult to obtain even before the collapse of SVB and other lenders.

The debt-ceiling impasse is adding to risk-off sentiment as Congress and the White House have made no progress in reaching a compromise. Treasury Secretary Janet Yellen warned yesterday of "catastrophic consequences" if the Treasury runs out of money and defaults on its obligations.

Capping gold's rise, the dollar added 0.2% against major rivals as traders hedged against tomorrow's release of April data on US consumer inflation. A stronger dollar weighs on gold by making it pricier in other currencies, limiting demand overseas. Benchmark 10-year Treasury yields were flat.

The other precious metals were also higher, with silver adding 0.3% while platinum and palladium climbed 2.6% and 1%, respectively.

At the Comex close: June gold gained $9.70 to $2,042.90; July silver added 6 cents, to $25.90; July platinum picked up $28.30 to $1,116; and June palladium advanced $16.30 to $1,579.70 an ounce.