Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close under $1,349 as rising inflation expectations boosted Treasury yields and the dollar, reducing demand for alternative assets.

Expectations for higher inflation climbed to nearly 2.2% this week, the highest level in three years. Derived from yields on 10-year TIPS, or inflation-protected Treasurys, the expectations reflect sharply higher commodity prices despite generally softer US economic data over the past few months. Yesterday, the CRB commodity index surged to the highest level since 2015 because of improving global growth and rising trade tensions between the US and Russia, a major producer of raw materials.

The dollar gained 0.3% against major rivals as benchmark 10-year Treasury yields climbed toward the psychologically important 3% level. A stronger dollar pressures gold and other commodities priced in it for international trade by making them more expensive overseas.

Some generally upbeat data also helped the dollar. Retail sales edged up 0.6% in March, slightly more than forecast, to break a four-month losing streak. The Philly Fed manufacturing index crept one point higher in April, though new orders declined.

The other precious metals were also lower, with silver dropping less than 0.1% while platinum and palladium lost 0.6% and 0.8%, respectively.

At the Comex close: June gold slid $4.70 to $1,348.80; May silver dipped less than one cent to $17.24; July platinum fell $5.40 to $940.10; and June palladium dropped $8.50 to $1,026.45 an ounce.