Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.8% to close at a five-week low under $1,323 as bond yields and the dollar continued to rise, reducing demand for alternative stores of value.

Yields on benchmark 10-year Treasury notes further eclipsed the psychologically-important 3% level, reaching as high as 3.19% as traders speculate that rising inflation will prompt the Fed to raise interest rates more aggressively this year.

CME FedWatch puts the likelihood of a fourth hike in 2018 at nearly 40%, up from less than 29% one month ago. Higher rates prompt investors to sell lower-yielding bonds, in turn putting downward pressure on bond prices, which pushes up yields.

The dollar hit a three-month high, adding 0.4% against major rivals. Rising yields and interest rates support the dollar as foreign investors must trade into the currency to purchase US government bonds and notes. A stronger dollar pressures gold by making it more expensive overseas.

The other precious metals were also lower, with silver dropping 1.2% while platinum and palladium lost 2.4% and 0.4%, respectively.

At the Comex close: June gold slid $10.20 to $1,322.80; May silver lost 20 cents to $16.50; July platinum dropped $22.30 to $912.70; and June palladium slipped $4.15 to $967.50 an ounce.