Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.2% to close under $1,713 as rising pandemic optimism lifted bond yields and the dollar, undercut the attraction of safe-haven asset. It was the metal's lowest finish in three weeks.

The Biden administration will announce the details of a new infrastructure plan this week, fueling new hopes that the US economy will rebound strongly in 2021. Combined with the $1.9 trillion pandemic relief package passed earlier this month, additional $3+ trillion in fiscal spending is expected accelerate growth this year and beyond.

In addition, President Biden announced today that the accelerated vaccine rollout will allow 90% of all US adults to get vaccinated within fie miles of their home by April 19.

Treasurys sold off on the upbeat outlook, pushing benchmark 10-year Treasury yields above 1.72%. Higher yields have been a serious headwind for gold in recent weeks because they increase the opportunity cost for hold it instead of bonds as a safe-haven asset.

The dollar also rallied, adding 0.2% to reach a four-month high, as Forex traders bet of a quicker recovery in the US than in Europe and much of Asia. A rising dollar pressures gold by making it more expensive in other currencies, curtailing overseas demand.

The other precious metals were mostly lower, with silver and palladium falling 1.2% and 5.4%, respectively, while platinum added 0.2%.

At the Comex close: April gold fell $20.10 to $1,712.20; May silver dropped 34 cents to $24.77; July platinum picked up $2.40 to $1,184.10; and June palladium shed $145.40 to $2,530.70.