Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close at $1,996 as Treasury yields rebounded on mixed data and traders hedged their bets ahead of this week's GDP and inflation reports. The metal had risen above $2,020 in intraday trade before falling back on profit-taking.

Durable-goods orders surged 3.2% in March, far beyond forecasts, but almost all the increase was due to new aircraft orders for Boeing. Excluding the volatile transportation sector, orders increased a scant 0.3% and business investment fell again, signaling a slowing US economy.

The US trade deficit in goods shrank to a four-month low on increasing exports and falling oil prices, possibly providing a small boost to GDP totals for Q1, which will be released tomorrow. But rising consumer pessimism and declining business investment are expected to take a toll on growth in Q2 and beyond.

Benchmark 10-year Treasury yields perked up, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven. Yields fell yesterday after renewed liquidity struggles for First Republic Bank rekindled anxiety about the stability of the baking sector.

Backstopping gold's slide, the dollar fell 0.3% against major rivals on the further signs of economic slowdown. Concern that the unresolved Congressional conflict over the debt ceiling could further damage growth also weighed on the buck.

The other precious metals were mostly higher, with platinum and palladium rising 0.7% and 1.9%, respectively, while silver edged down less than 0.1%.

At the Comex close: June gold lost $8.50 to $1,996; May silver dipped less than a penny to $24.88; July platinum picked up $7.80 to $1,106; and June palladium climbed $27.50 to $1,508.40 an ounce.