Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped another 0.8% to close above $1,728 as mixed US data buoyed demand for safe havens despite rising US equities. The metal has gained 2.6% over the last two sessions.

US jobless claims surged unexpectedly 719,000 last week as huge numbers of Americans still struggle to find work. Another 237,000 filed through the federal jobless program extended by Biden's new $1.8 trillion relief package. The rises underscore the deep wounds to the labor market by the pandemic, only recently beginning to heal.

Construction spending fell 0.8% in March, according to Commerce Department data, pressured by cold winter weather. A rebound is expected, however, because of massive fiscal stimulus. On the plus side, the ISM manufacturing index leapt to the highest level in 38 years, signaling growing momentum in this forward-looking sector.

Treasury yields retreated for a second day on flights to safety, with the benchmark 10-year yield tumbling nearly 7 basis points for its biggest one-day drop since November. Falling yields support gold by reducing the opportunity cost for holding the metal instead of bonds as a haven asset.

The dollar tracked yields lower, losing nearly 0.4% against major rivals. A weaker dollar lifts gold and other commodities by making them less expensive overseas.

President Biden unveiled the details of his $2.3 trillion jobs and infrastructure plan, calling it a "once in a generation investment in America." He plans to finance it, in part, by raising corporate taxes and hiking the global minimum tax of global corporations. Gold received support from investors concerned that the staggering amounts of government spending on tap will drive inflation much higher in coming years.

The other precious metals were also higher, with silver rising 1/7% while platinum and palladium both added 1.4%.

At the Comex close: June gold gained $12.80 to $1,728.40; May silver climbed 42 cents to $24.95; July platinum picked up $17.10 to $1,208.60; and June palladium added $35.90 to $2,655.80 an ounce.