Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close above $1,770 as rising risk appetite from improved corporate earnings pressured the dollar, boosting demand for alternative stores of value.

Wall Street rallied behind a second day of strong corporate earnings, with healthcare and tech shares leading the way after banking shares led yesterday. The S&P 500 and Nasdaq rose 0.7% each while the Dow picked up 0.5%.

Benchmark 10-year Treasury yields rose alongside risk sentiment as investors traded from bonds into stocks. Higher yields typically weigh on gold by increasing the opportunity cost for holding it instead of bonds as safe-haven asset. But ongoing concerns about rising consumer prices supported the metal as an inflation hedge despite the upward pressure inflation puts on bond yields.

The dollar fell 0.3% against major rivals as Forex traders shifted toward commodity-driven currencies like the New Zealand and Australian dollar. The UK pound also rose against the buck on expectations that the BoE will raise interest rates to contain inflation.

A weaker dollar supports makes gold and other commodities by making them cheaper in other currencies, fueling overseas demand.

The other precious metals were also higher, with silver jumping 2.7% while platinum and palladium climbed 0.9% and 3.1%, respectively.

At the Comex close: December gold added $4.80, to $1,770.50; December silver gained 62 cents to $23.88; January platinum picked up $9.20 to $1,047.10; and December palladium climbed $87.80 to $2,100.90 an ounce.