Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold retreated 0.7% to close under $1,722 despite some soft US data as bond yields and the dollar rose on optimism that the Biden stimulus package and vaccine rollout will spur economic growth and inflation.

The US services sector fell more than forecast in February, with restaurants, hotels, banks, and retailers still suffering from the pandemic. Comprising more than 70% of GDP, this crucial sector is expected to rebound quickly as vaccinations become widespread and more businesses reopen fully.

ADP reported the private sector added a tepid 117,000 new jobs in February, well below January's adjust total of 195,000.

Despite the downbeat data, the selloff in bonds continued, lifting benchmark 10-year Treasury yields back to nearly a 1-year high around 1.5%. Traders have been liquidating longer-duration Treasurys in recent weeks in anticipation that an additional $1.9 trillion in pandemic relief will fuel significantly higher prices for goods and services, undermining the future value of money locked up in bonds.

Even though gold is often purchased as a long-term store of value, rising yields have created headwinds for metal by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar added 0.2% against major rivals on expectations that additional stimulus will drive the US economy to recover more quickly than those of Europe or Japan. As lockdowns continue to pressure services industries, data indicates that the eurozone almost certainly has entered a double-dip recession.

The other precious metals were also lower, with silver dropping 2.1% while platinum and palladium fell 2.2% and 0.4%, respectively.

At the Comex close: April gold slid $12.10 to $1,721.50; May silver dropped 57 cents to $26.31; April platinum fell $32.60 to $1,186.80; and June palladium slipped $14.20 to $2,360 an ounce.