Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 0.9% to close at $1,798 as Treasury yields and the dollar fell again on concerns that higher interest rates could push the economy into recession.

Benchmark 10-year Treasury yields retreated to a three-month low near 3.4% while the spread between it and two-year yields widened to minus 85 basis points, the most since 1981. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Yields have fallen as investors increasingly worry about the recessionary risks stemming from the Fed's hyper-aggressive campaign of rate hikes this year. The inverted yield curve between two-and 10-year Treasurys is often considered a reliable indicator of coming recession.

Jamie Dimon, CEO of JPMorgan Chase, said yesterday that the tighter monetary policy, which has increased rates from near zero to nearly 4% in nine months, is expected to cause "a mild or hard recession" near year.

Tracking lower with yields, the dollar fell another 0.5% against major rivals, lifting gold and other commodities by making them less expensive on other currencies.

The other precious metals were also higher, with silver rising 2.6% while platinum and palladium added 1.6% and 0.2%, respectively.

At the Comex close: February gold gained $15.60 to $1,798; March silver climbed 59 cents to $22.92; January platinum picked up $16.10 to $1,011.50; and March palladium rose $2.80 to $1,854.30 an ounce.