Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinApril gold fell 0.4% to close just above $1,841 as some upbeat data spurred a rebound in equities and higher bond yields, weighing on alternative assets. It was the metal's sixth straight lower session, the longest streak since last March.

First-time claims for unemployment benefits fell to the lowest level in three weeks, dropping 67,000 to 847,000 last week with another 426,000 filing through a temporary federal-relief program. While layoffs continue at an elevated pace, the recent reductions in jobless claims suggests the worst of the pandemic surge may be leaving the labor market.

Durable goods orders and business investment both rose for the eighth straight month, signaling that companies expect the US economy to rebound later this year. Meanwhile, GDP rose at a modest rate of 4% in Q4, according to government statistics.

US economic indicators showed growth hit the brakes in December, the Conference Board reported, because of the record increases in COVID-19 cases. But the trade deficit narrowed by 3.5% as Americans purchased fewer goods and services from overseas.

Wall Street rebounded after yesterday's sharp drop, with the Dow and S&P 500 both adding 1% while the Nasdaq rose 0.5%. Yields on benchmark 10-year Treasurys saw their biggest rise in three weeks as risk appetite returned on the upbeat data and hopes for additional fiscal stimulus.

The other precious metals were mixed, with silver and palladium rising 2.1% and 0.5%, respectively, while platinum slid 0.6%.

At the Comex close: April gold, now the most-active futures contract, fell $7.70 to $1,841.20; March silver jumped 53 cents to $25.92; April platinum dropped $6.60 to $1,072.40; and March palladium added $11.80, to $2,322.30 an ounce.