Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,985 as easing fears about the banking sector boosted risk appetite and the dollar, undercutting safe-haven assets.

With a relative calm returning to the global banking system after weeks of tumult, investors returned to the equities market, lifting the Dow and S&P 500 by 0.9% and 1.3%, respectively.

The tech-heavy Nasdaq did even better, rallying 1.8% as traders increasingly believe the Fed will pivot away from rate hikes either in May or soon thereafter. High flying growth and technology shares are especially sensitive it interest rates because their profits, projected into the future, are heavily eroded by borrowing costs.

According to CME FedWatch, trading in Fed fund futures reveals a 59% likelihood that the Fed has already finished raising interest rates, while the odds of one more rate hike in May are 39%. Either way, traders are pricing-in a 99% certainty that the Fed will reverse direction and begin cutting interest rates by July.

Benchmark 10-year Treasury yields and 2-year yields were both virtually unchanged as rising risk appetite, which typically raises yields by reducing demand for bonds, was neutralized by the prospect of lower interest rates to come.

The dollar added 0.3% as Forex traders left safe-haven currencies like the Japanese yen and Swiss franc. A rising dollar pressures gold by making it pricier overseas.

The other precious metals were higher, with silver adding 0.2% while platinum and palladium picked up 0.6% and 1.6%, respectively.

At the Comex close: June gold slipped $5.90 to $1,984.50; May silver gained 5 cents to $23.47; July platinum rose $5.50 to $977.40; and June palladium climbed $22.40 to $1,437.10 an ounce.