Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.7% to close at a one-week low under $1,733 as a bump in Treasury yields prompted traders to take profits from last week's 1% rise.

Treasury yields crept higher on renewed concerns about inflation, with the benchmark 10-year yield adding two basis points to climb above 1.68%. Fed Chair Jerome Powell said on 60 Minutes last night that the economy is "at an inflection point" that will lead to sharply higher growth in coming quarters, which is likely to increase price pressure.

Powell also said that the central bank is committed to keep interest rates near zero until the economy is "back to maximum employment" and inflation is "on track to move above 2% for some time."

While rising inflation is typically bullish for gold as a long-term store of value, it also spurs investors to demand higher returns for tying up their money, lifting yields. Higher yields present a headwind for the metal by increasing the opportunity cost for holding it instead of bonds.

Key information is expected this week when the government releases its updated consumer price index. The producer price index released last week showed wholesale inflation jumping 1% in March.

Meanwhile, the US budget deficit doubled to $660 billion in March as $1,400 pandemic relief checks were sent out. The deficit soared to a record $3 trillion last year, pushing the national debt to more than $28 trillion currently. Excessive debt can weigh on economic growth and undermine the dollar.

The other precious metals were mostly lower, with silver and platinum dropping 1.8% and 2.9%, respectively, while palladium added1.4%.

At the Comex close: June gold slid $12.10 to $1,732.70; May silver lost 46 cents to $24.87; July platinum fell $34.50 to $1,174.80; and June palladium added $35.90, to $2,671.90 an ounce.