Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,732 despite rising bond yields and a stronger dollar as bargain-hunters re-entered the market following soft US consumer data. The metal still fell 0.5% for the week, its first weekly decline in three weeks, on rising risk appetite.

Consumer spending fell 1% in February, the biggest monthly slump since the pandemic began, as Americans ran out of government aid. At the same time, incomes tumbled 7.1%.

With consumer spending accounting for around 70% of GDP, the soft data would augur ill for the economic recovery were it not for the $1.9 trillion relief package passed this month, which immediately put $1,400 checks into the hands of many consumers.

With the accelerating roll out of vaccines and the return of assistance, consumer sentiment rose in March to the highest level in nearly a year, according to the University of Michigan survey, yet remains well-below pre-pandemic levels.

The dollar and Treasury yields rose despite the soft spending data as traders look toward better times ahead. A stronger dollar typically pressures gold by making it more expensive overseas, while higher yields increase the opportunity cost for holding the metal instead bonds as a safe-haven asset.

Wall Street also rose, with the Dow and S&P 500 adding 1.2% and 1.4%, respectively, while the tech-heavy Nasdaq picked up 1%.

The other precious metals were higher for the day and mixed for the week. Silver added 0.3% put posted a weekly loss of 4.6%. Platinum climbed 2.1% today but shed 1.9% this week. Palladium gained 2.3% for a weekly rise of 1.7%.

At the Comex close: April gold gained $7.20 to $1,732.30; May silver picked up 7 cents to $25.11; April platinum climbed $23.70 to $1,177.90; and June palladium jumped $60.70 to $2,676.10 an ounce.