Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rebounded 1.5% to close above $3,332 on bargain-hunting as confidence about trade negations with China eroded, undercutting Treasury yields and the dollar while boosting safe-haven assets. Silver edged up 0.1% to finish at $33.07 an ounce.

Last week, bullion slipped 0.8% after President Trump signaled progress in talks with China. Chinese Present Xi denied that negotiations were taking place, but Wall Street rallied anyway as investors shifted toward risk assets on trade optimism.

But over the weekend, Treasury Secretary Scott Bessent said he could not confirm that talks in fact are taking place. The news put a damper on risk appetite today, pushing equities into losses and rekindling demand for safer investments.

Benchmark 10-year Treasury yields slid back under 4.3% as investors sought the perceived safety of US government bonds. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar lost 0.4% against major rivals, boosting gold and other commodities by making them less expensive in other currencies.

Several important economic reports this week will help to shed light on the effects of current trade policy. The PCE index report on Wednesday will give better insight into inflation, while the US jobs openings report tomorrow and the US nonfarm payrolls report on Friday will indicate the health of the labor market.

Platinum rose 1.9% while palladium was nearly flat.

At the New York spot close: gold gained $50.10 to $3,332.50; silver added 4 cents, to $33.07; platinum picked up $18.60 to $987.40; and palladium edged down 70 cents to $943.30 an ounce.