Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold soared 1.4% higher to close near $1,792 after disappointing US factory data pressured Treasury yields and the dollar, lifting demand for alternative stores of value.

The ISM manufacturing index fell unexpectedly in April, retreating under 61 from nearly 65 in March, as pandemic-related bottlenecks and high prices on parts and materials threaten to stimy the recovery in this forward-looking sector.

Benchmark 10-year Treasury yields receded to just above 1.6% after the ISM data, supporting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Yields were also pressured by comments from Treasury Secretary Janet Yellen on Sunday. Appearing on Meet the Press, the former Fed Chair said the $4 trillion Biden infrastructure plan would not fuel inflation because it will be phased in over a decade.

NY Fed President John Williams also tamped down inflation concerns today, saying it is likely to run above 2% for the rest of the year but retreat in 2022 after pent-up demand for goods and services following closures has been met.

The dollar tracked lower with bond yields, falling 0.4% against major rivals. A weaker dollar lifts gold and other commodities by making them less expensive overseas.

Oil also lifted gold, with WTI crude jumping 1% to more than $64 per barrel on the prospect of rising global demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver surging .2% while platinum and palladium added 2.1% and 0.9%, respectively.

At the Comex close: June delivery gold soared by $24.10 to $1,791.80; July silver surged $1.09 to $26.96; July platinum rose $24.90 to $1,230.10; and June palladium picked $27.70 to $2,981.40 an ounce.