Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close near $1,825 as bargain-hunters entered the market and Treasury yields and the dollar retreated on soft durable goods data. It was the metal's first winning session in the past six.

Orders for long-lasting manufactured goods fell 4.5% in January, more than expected, because of a pullback in orders for commercial passenger aircraft. Outside of transportation, new orders rose in most categories other than communications equipment.

Benchmark 10-year Treasury yields retreated slightly but remained above 3.9% as traders took profits from last week's sharp rise driven by expectations that the Fed will raise interest rates higher and for longer following Friday's hot PCE inflation data.

The dollar tracked lower with yields, shedding 0.4% after hitting a fresh 7-week high on Friday. Following the latest PCE release, which showed prices for goods and services reaccelerating in January, the markets are now pricing in a March rate hike of 50 basis points, up from 12% one week ago.

Falling yields buoy gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset. A weaker dollar lifts good and other commodities by making them less expansive in other currencies.

The other precious metals were moistly higher, with platinum and palladium adding 3.7% and 3.6%, respectively, while silver slipped 0.7%.

At the Comex close: April gold gained $7.80 to $1,824.90; May silver slipped 14 cents to $20.79; April platinum picked up $34 to $941.90; and June palladium climbed $49.50 to $1,427.90 an ounce.