Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close under $1,771 as an uptick in Treasury yields prompted traders to take profits from last week's 2% rally to a fresh seven-week high.

Benchmark 10-year Treasury yields rose two basis points but remained under 1.6%, significantly under recent highs, as investors weigh the prospects of a revving economy against rising cases of Covid-19 and repeated assurances from the Federal Reserve that interest rates will remain unchanged for years.

Fed Governor Christopher Waller is the latest central bank official reinforce the easy-money message, saying on CNBC on Friday that the economy is "ready to rip" but any inflation increase is likely to be transitory.

Higher yields tend to pressure gold by increasing the opportunity cost for holding the metal instead of bonds as a safe-haven asset. After rising above 1.75% in late March, the highest level since pandemic began, the recent pullback in yields has helped gold rebound around 4% this month.

Gold's slip came despite a weaker dollar, which fell 0.5% to a six-week low against major rivals. Weakness in the dollar is generally supportive of higher commodity prices because it makes them less expensive on other currencies, boosting demand overseas.

The other precious metals were mixed, with silver and platinum dropping 1% and 0.2%, respectively, while palladium rose another 1.4% on global supply concerns.

At the Comex close: June gold slid $9.60 to $1,770.60; May silver dropped 27 cents to $25.84; July platinum dipped $2.20 to $1,206.50; and June palladium climbed $38.90 to $2,813.60, a new record.