Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 0.7% to close at $1,898 as weaker data pressured stocks, yields, and the dollar while boosting demand for alternative stores of assets. It was the metal's eighth winning session in the past nine, and its highest finish since January 7.

Consumer confidence fell in May for the first time in six months as Americans are becoming more concerned about rising inflation and an uncertain labor market. While widespread vaccinations have unleashed a wave of economic activity, many are still concerned about the pandemic's effect on their financial future.

Sale of new homes fell 6% in April, according to US Census Bureau figures, as low inventory and high demand, driven by rock-bottom mortgage rates, are pushing prices beyond the reach of many. The decline tracked with a similar drop-off in existing home sales.

Wall Street retreated, with the Dow and S&P 500 falling 0.3% while the Nasdaq edged down 0.1%. Treasury yields fell to a fresh two-week low as investors shifted toward safe havens. Lower yields support gold by reducing the opportunity cost for holding it instead of bonds.

The dollar skidded to the lowest level since early January, pressured by falling yields and a sharply higher yuan. A weaker dollar helps gold and other commodities by making them cheaper in other currencies.

Consistently dovish messaging from the Fed, reassuring the markets of ongoing monetary easing despite sharpy higher inflation, has suppressed yields and the dollar in recent weeks, lifting gold.

The other precious metals were also higher, with silver rising 0.5% while platinum and palladium both added `1.7%.

At the Comex close: June gold rose $13.50 to $1,898; July silver added 15 cents, to $28.06; July platinum climbed $19.30 to $1,196.90; and June palladium picked up $47.40 to $2,777.20 an ounce.