Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.4% to close above $1,935 as soft US data weighed on yields and the dollar, fueling demand for alternative assets. It was the metal's fourth straight winning session and highest finish in nine months.

The US economy was weak to start the new year, according to S&P Global surveys, with business conditions contracting in January for the fourth consecutive month. Both the services and manufacturing sectors edged up slightly from the previous month but remained decidedly in the negative as demand remained depressed.

Benchmark 10-year Treasury yields slid back under 3.5% as traders bet that the weakening economy and falling inflation will slow the Fed's rate-hike regimen. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Fed fund futures traders now see a 98% chance of a rate increase of 25 basis points at the Fed's meeting next week, up from 66% a month ago, with probably one more increase of the same size by June.

The dollar slid 0.2% against major rivals after business conditions in the Eurozone unexpectedly improved, lifting the euro. A falling dollar helps gold and other commodities by making them less expensive in other currencies, increasing demand overseas.

The other precious metals were also higher, with silver rising 0.8% while platinum and palladium added 1% and 2%, respectively.

At the Comex close: February gold gained $6.80 to $1,935.40; March silver added 20 cents, to $23.75; April platinum picked up $10.50 to $1,066.80; and March palladium climbed $34.10 to $1,735.50 an ounce.