Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold jumped 1.3% to close at a new all-time high above $2,417 as weak US data pressured the dollar and China unveiled stimulus to support its devastated real estate market. The metal ended the week 1.8% higher. Silver surged 4.7% to finish at $31.05, the highest level in 11 years, for a weekly gain of nearly 10%.

The Peoples Bank of China announced an historic $183 billion in stimulus to support its collapsing real estate sector, which accounts of nearly a fifth of Chinas GDP. With new home prices falling for 10 straight months, a string of defaults by major developers, and property investment tumbling 10% so far this year, the sector has been a major drag on Chinas economy.

The influx of stimulus money is expected to benefit commodities and especially retail gold investment, which has become a major alternative to stock and real-estate market investing for many middle-class Chinese citizens in 2024.

Closer to home, the Conference Board reported that the leading indicators for the US economy plunged 0.6% in April, pointing to serious headwinds to growth. After two years of declines, the index turned positive in February for one month.

The dollar edged down slightly as the downbeat data combined with this weeks reports of falling consumer inflation and weak retail stales to boost expectations that the Fed will begin cutting interest rates in September. The buck is down 0.8% for the week and 1.7% this month, lifting gold and other commodities by making them cheaper in other currencies.

Platinum rose 1.7% for a monthly gain of 8.2%. Palladium picked up 1.2% today and 3% this week.

At the New York spot close: gold jumped $31.90 to $2,417.40; silver surged $1.38 to $31.05; platinum added $18.70, to $1,090; and palladium picked up $12.40 to $1,010.80 an ounce.