Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rebounded by 0.4% to close above $2,034 as pullbacks in yields and the dollar prompted bargain-hunters to enter the market after two days of modest losses.

With no major US data releases today, benchmark 10-year Treasury yields fell back under 4.1% as investors returned to government debt for safety despite expectations that the Fed will delay rate cuts until May. Lower yields lift gold by decreasing the opportunity cost for holding it instead of bonds.

Fed funds futures trading now puts the odds of a March cut at less than 20%, down from 80% just weeks ago, while the likelihood of a May cut is more than 66%.

Tracking lower with yield, the dollar shed 0.3% just one day after hitting an 11-week high. A falling buck supports gold and other commodities by making them less expensive in other currencies.

Robust expansion in the services sector and a blockbuster jobs report for January, along with hawkish statement from some Fed officials, have decidedly shifted the outlook for an initial rate cut from March to May, pressuring gold while lifting yields and the dollar in recent sessions. Today’s action signals those movements were probably overdone.

Despite the shifting rate view, gold continues to be supported by safe-haven inflows to geopolitical turmoil in the Middle East and Ukraine, and aggressive buying from major central banks.

The other precious metals were mostly higher, with silver and platinum adding 0.3% and 0.8%, respectively, while palladium slipped 0.5%.

At the New York spot close: gold gained $8.80 to $2,034.50; silver rose 6 cents to $22.48; platinum picked up $7.50 to $911; and palladium dipped $4.70 to $951.40 an ounce.