Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close near $1,891 as Treasury yields pulled back and the markets digested recent comments from Fed officials. It was the metal's third straight day of gains.

A pair of prominent Fed officials argued for going more gently in the fight against inflation. New York Fed Chair John Williams said today that the central bank is close "to where the peak interest rate is going" and "smaller steps" are sufficient from this point forward.

Echoing the scaled-back approach, Fed Governor Lisa Cook also called for "smaller steps" while the Fed gauges "the effect of our cumulative tightening in the economy and inflation." Neither Fed official mentioned the unexpectedly strong January payroll reprot as a reason to be aggressive with rate hikes.

The comments follow those by Fed Chair Powell, who yesterday reiterated his stance that the "disinflation process" is underway in the economy "for the first time." Last week, Powell also suggested rates could come down if inflation abates by more than expected.

According the CME FedWatch tool, traders now project a 70% likelihood that rates will peak at slightly above 5% in May, then drop by 50 basis points by the end of this year.

Traders in derivatives known as fixings, who correctly anticipated the run-up in inflation last year, now see inflation dropping below 3% on falling demand in a few months and staying there through 2023.

Benchmark 10-year Treasury yields pulled back slightly on the mild Fed dovishness, lifting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset. The dollar was little changed.

The other precious metals were mostly higher, with silver and platinum adding 1.1% and 0.1%, respectively, wheelie palladium slipped 0.3%.

At the Comex close: April gold gained $5.90 to $1,890.70; March silver picked up 24 cents to $22.42; April platinum added $1, to $987.20; and March palladium slipped $5.60 to $1,635.90 an ounce.