Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.5% to close at a one-week low under $2,905 despite a sharp plunge in Treasury yields as traders took profits from yesterday's rise to another new record high. Bullion has set 11 new records so far this year on safe-haven demand propelled by the disruptive trade policies of President Trump. Silver shed 2.4% to finish at $31.80 an ounce.

US consumer confidence declined at the sharpest rate in nearly four years this month, according to the Conference Board index, settling at an eight-month low as Americans grew anxious over tariffs and inflation. The plunge in confidence comes less than a week after the University of Michigan's gauge of consumer sentiment dropped 10% to a 15-month low.

While both measures are taken monthly to gauge the attitude of consumers to the economy and their own finances, the sentiment index reflects attitudes right now, while the confidence index projects forward by six months.

President Trump confirmed yesterday the 25% tariffs on Mexico and Canada, after being postponed for 30 days, are "on schedule" to "very rapidly" begin on March 1. They come atop "reciprocal" tariffs on all trading partners, with an emphasis on the EU; 10% tariffs on China; and 25% tariffs on all steel and aluminum imports, with similar levies probable on pharmaceuticals, cars, and semi-conductors.

Benchmark 10-year Treasury yields fell under 4.3% for the first time since December as investors, spooked by Trump trade policies, fled to safety. Tracking lower with yields, the dollar lost 0.3% to hover near a two-month low against major rivals.

Platinum dipped 0.2% while palladium lost 2.1%.

At the New York spot close: gold fell $43.40 to $2,904.50; silver shed 77 cents to $31.80; platinum dipped $1.90 to $965; and palladium slid $20.40 to $928.60 an ounce.