Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close at $1,775 after disappointing US economic data pressured stocks and the dollar, lifting demand for alternative assets.

The US labor market continues to struggle, with 861,000 Americans filling for first-time unemployment benefits through states last week, an increase of 13,000 over the previous week. The uptick took analysts by surprise after two straight weeks of lower claims.

The Philadelphia Fed manufacturing index fell in February after a big rise in January, with new orders and shipments both moderating. Factory output has been a continuing strength of the economy during the pandemic as the services sector has been hammered.

Wall Street fell as caution return to the markets, with the Dow and S&P sliding 0.3% and 0.4%, respectively, while the tech-heavy Nasdaq dropped 0.8%.

Import inflation jumped 1.4% last month in another signal that prices are rising as the pandemic increasingly comes under control through vaccines. Wholesale and retail inflation have also risen sharply in the past month.

Fed Chair Jerome Powell has been explicit recently in asserting that rising inflation is expected as the recovery takes hold, but it will not result in monetary tightening. Seeing little prospect of the economy overheating, the Fed will let inflation run hot for an extended period to help the economy return to full employment.

The dollar fell 0.4% against major rivals on the downbeat data, supporting gold and other commodities priced in it for global trade. Yesterday's Fed minutes, which signaled the continuation of loose monetary policies despite higher inflation, also weighed on the buck.

The other precious metals were mixed, with silver and palladium sliding 0.9% while platinum added 1.4%.

At the Comex close: April gold rose $2.20 to $1,775; March silver slid 24 cents to $27.08; April platinum gained $17 to $1,274.70; and March palladium dropped $20.90 to $2,348.80 an ounce.