Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained $5.50 to close at $2,034 despite slightly higher Treasury yields as the dollar eased on soft US data, boosting alternative stores of value.

US durable goods orders fell 6.1% in January, far more than consensus forecasts of 4.5% to 5%, as orders for commercial aircraft tumbled 59%. Orders minus transportation, a more accurate view of performance, fell 0.3% while overall business investment dropped 0.1%.

Benchmark 10-year Treasury yields edged up to 4.3% as traders the important PCE index release on Thursday. The Fed’s favorite measure of inflation, the January PCE should give more clarity about the course of interest rate policy in coming months.

The dollar dipped 0.1% against major rivals on the weak durable goods data and stronger-than-expected consumer inflation data in Japan. The yen rose on hopes that rising prices could spur the Bank of Japan to end negative interest rates by April.

Gold continues to be supported by physical demand in Asia. Gold imports into China from Hong Kong jumped in January to the highest level since 2018 as the Chinese middle class seeks to preserve its wealth amidst the ongoing real estate crisis and stock market selloff. China is the largest bullion buying nation in the world.

The other precious metals were mixed. Platinum rose 1.8%, palladium fell 1.5%, and silver was unchanged.

At the New York spot close: gold gained $5.50 to 2034; silver was flat at $22.53; platinum rose $15.90 to $897; and palladium fell $14.60 to $942.390 an ounce.