Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold inched up 0.1% to close above $1,780 after the Dow and the dollar slipped on middling US economic data, lifting demand for alternative stores of value ahead of this week's meeting of the Federal Reserve.

US durable goods orders rose 0.5% in March, reflecting an increase in demand for electronics, autos, and machines meant to last at least three years. While the orders increased from a dismal February, they fell far short of the 2.2% rise that had been expected by many economists.

Core durable goods, excluding defense and transportation order, increased 0.9%, signaling a rebound in business spending.

The Dow fell from mild gains to a loss of 0.2% after the Commerce Department released the durable goods data. The Nasdaq and S&P 500 rose 0.2% and 0.9%, respectively, on strong earnings reports from tech giants like Amazon, Microsoft, and Tesla.

Benchmark 10-year Treasury yields edged higher as traders position themselves for news about monetary stimulus from the Fed meeting this week. While no important changes in policy are expected, suggestions that inflation is a growing concern would likely decrease appetite for long-term debt, lifting yields.

Higher Treasury yields can be a headwind for gold because they increase the opportunity cost for holding the metal instead of bonds. On the other hand, rising inflationary pressure typical spurs demand for the metal as a hedge against loss of purchasing power.

The dollar edged down 0.1% to hover near an eight-week low. A weaker dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were also higher, with silver rising 0.5% while platinum and palladium climbed 1% and 1.8%, respectively.

At the Comex close: June gold gained $2.30 to$1,780.10; May silver picked up 13 cents to $26.21; July platinum rose $12.10 to $1,245.20; and June palladium jumped another $52.30 to $2,909.30 an ounce, another record high, on a global supply deficit.