Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's 1.5% rally, gold added another 0.6% to close at a one-month high above $1,946 as investors sought protection from surging inflation and the economic fallout from Russia's intensifying war on Ukraine. The metal reached as high as $2,003 in intraday trading before slipping back on rising Treasury yields and a stronger dollar.

With consumer and wholesale prices surging in March to the highest levels since the early 1980s, import prices are adding more fuel to the inflation fire. The cost of imported goods like oil and food jumped 12.5% last month, the biggest increase since 2011, propelled largely by disruptions caused by Ukraine war.

Russian missiles bombarded factories, railways, and other infrastructure throughout the Donbas region of eastern Ukraine as Moscow prepares for a major offensive. Evacuations were halted by the Ukrainian government after accusing Moscow of shelling the humanitarian corridors.

Capping gold's rise, benchmark 10-year Treasury yields pushed above 2.85%, the highest level since 2018, as investors scrambled to keep up with inflation expectations and the prospect of sharply higher interest rates.

The dollar rose to a new two-year high against major rivals of the prospect of an aggressive monetary tightening from the Fed, including a series of half-point rate increases starting in May.

The other precious metals were also higher, with silver climbing 1.8% while platinum and palladium rose 2.7% and 3.8%, respectively.

At the Comex close: June gold gained $11.50 to $1,986.40; May silver climbed 45 cents to $26.15; July platinum added $26.30, to $1,020.50; and June palladium picked up $89.70 to $2,445.10 an ounce.