Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close near $1,882 as Treasury yields and the dollar fell on mostly upbeat US data, lifting demand alternative assets. The metal's sixth straight winning session notched its longest streak on the year.

The US index of leading economic indicators posted another a gain in April, rising 1.6% for the biggest increase since last July. With the recovery gathering momentum, real GDP growth in Q2 could be as much as 9%, according to Conference Board forecasts, with annual growth of 6.4%.

Separately, first-time jobless claims fell by 32,000 last week to a pandemic low of 444,000, beating forecasts.

On the downside, The Philly Fed manufacturing index fell sharply in May, dropping from a 50-yer high in April as sputtering supply lines and labor shortages held back factory output. The Empire State index reported similar slowdowns for the month.

US equity index snapped a three-day losing streak on the solid economic reports. The Dow added 0.6% while the S&P 500 and Nasdaq jumped 1% and 1.6%, respectively.

The dollar lost 0.5% against major rivals, plumbing multi-month lows, as rising risk sentiment prompted Forex traders to shift away from the perceived safety of the buck. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Treasury yields also pulled back, with benchmark 10-year yields dipping under 1.63%, as traders digested yesterday's Fed minutes. Yields jumped yesterday after "a number" of Fed officials reportedly were open to discussing a reduction in quantitative easing. Today, the bond market realized that discussing reductions and actual tapering are far apart, given aggressive reassurances from the Fed to support the economy until full employment.

The other precious metals were mostly higher, with silver and platinum adding 0.2% and 0.3%, while palladium slipped 0.5%.

At the Comex close: June gold picked up 40 cents to $1,881.90; July silver added 4 cents, to $28.07; July platinum rose $3.40 to $1,205; and June palladium dropped $14.60 to $2,870.20 an ounce.