Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinFollowing yesterdays market closure for the Juneteenth holiday, New York spot gold surged 1% to close at a two-week high near $2,354 as a slowing US economy boosted hopes for lower interest rates. Silver rocketed 4.3% higher to nearly $30.80 an ounce.

The Commerce Department said housing starts tumbled 5.5% to the lowest level since June 2020 despite falling mortgage rates. Permits for future housing construction fell 3.8%, also to the lowest level in four years.

The Philly Fed gauge of regional business activity fell again to the lowest reading in January, reversing recent signs of a turnaround in manufacturing.

Jobless claims slipped 5,000 last week to 328,000, making up a third of the jump from the previous week. But the four-week average increased by 5,000 to 232,750, the highest reading since last September.

Combined with last weeks soft retail sales and falling readings on both wholesale and consumer inflation, the data point to an overall slowing US economy, something the Fed has been seeking before it starts to unwind the highest interest rates in decades.

Falling interest rates are bullish for gold because the lower bond yields, decreasing the opportunity cost for holding the non-yielding asset. And narrowing the interest rate differential with other currencies puts downward pressure on the dollar, lifting gold and other commodities by making them cheaper overseas.

Gold was also supported by the ongoing rally in oil prices. US benchmark WTI crude added another 1% to $82.35, a fresh 7-week high, on shrinking US reserves. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Platinum and palladium picked up 0.7% and 2.4%, respectively.

At the New York spot close: gold surged $23.40 to $2,353.80; silver jumped $1.27 to $30.78; platinum added $7.10, $984.30; and palladium $21.80 to $905.40 an ounce.