Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close above $1,830 after record-low consumer sentiment data pressured yields and the dollar, buoying safe-haven assets. The metal ended the week down 0.5% on concerns about higher interest rates.

The final print on US consumer sentiment in June fell to 50, the lowest level in the 44-year history of the University of Michigan survey. The worst inflation in 40 years and a slowing economy are making Americans think twice about purchases.

With consumer spending accounting for roughly 70% of GDP, the souring outlook bodes ill for future economic growth.

Benchmark 10-year Treasury yields retreated to just above 3% as investors, worried about the possibility of recession, sought safety in government bonds. Weaker yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with Treasury yields, the dollar dropped 0.3% against major rivals as Forex traders re-evaluated the likely path of monetary policy. With signs of recession becoming more obvious, bets are increasing that inflation may ease by the fall and the Fed may become less aggressive in hiking rates.

Wall Street rebounded on the possibility of a more moderate Fed approach, with the Dow rising 2.8% while the S&P 500 and Nasdaq jumped 3% and 3.3%, respectively.

The other precious metals were mixed for the day and week. Silver added 0.4% today but lost 2.1% this week. Platinum dipped 0.1% for a weekly loss of 2.9%. Palladium picked up 1.7% for a weekly rise of 3.1%.

At the Comex close: August gold added 50 cents, to $1.830.30; July silver climbed 8 cents to $21.13; July platinum slipped 70 cents to $903.70; and September palladium picked up $30.20 to $1,854.30 per ounce.