Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 1.8% to close above $1,715 as Treasury yields and the dollar slipped despite strong jobs data, lifting demand for alternative stores of value. Short-covering purchases by hedge funds to square end-of-quarter books also helped. But the metal still declined more than 7% for the quarter, its biggest quarterly decline since late 2016, behind sharply higher Treasury yields.

Private payrolls added 517,000 jobs in March, according to ADP, the largest rise in six months. The potent combination of increasing vaccinations, societal reopens, and the new $1.9 trillion relief package brought relief to sectors badly damaged by the pandemic, like hospitality businesses, restaurants, and bars.

Counterbalancing optimism about jobs data, the US housing market struggled in February, according to the National Association of Realtors, as pending home sales fell nearly 11%. Rising mortgage rates and shrinking inventory were largely to blame. It was the fourth straight month of declining sales in existing homes, an important segment of this key sector.

The recent selloff in Treasurys took a breather, with benchmark 10-year yields declining slightly on the uncertain pandemic course. Weaker yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Public health officials have warned in recent days that a deadly fourth wave of infections could soon sweep the US, as it has Europe, because of virulent new strains of Covid-19.

The dollar edged down 0.1% against major rivals, buying gold and other commodities priced in it for global trade by making them less costly in other currencies.

The other precious metals were higher for the day and mixed for the quarter. Silver rose 1.6% but still lost 7.2% in Q1. Platinum climbed 2.7% for a 10% quarterly gain. Palladium climbed 2% today and 6.8% this quarter.

At the Comex close: June gold, the most active contract, jumped $29.60 to $1,715.60; May silver rose 39 cents to $24.53; July platinum gained $30.90 to $1,191.50; and June palladium added $50.90, to $2,619.90 an ounce.