Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.6% to just under $3,074, yet another new all-time high, after rising core inflation, soft consumer spending, and tumbling consumer sentiment drove investors into safe havens. Bullion rallied 1.8% for the week to notch its fourth straight weekly rise and eighteenth record-high price. Silver dropped 1.3% to $34 but still gained 3.1% for the week.

The core PCE index, the Fed's preferred inflation gauge, rose 0.4% in February, more than forecast and the biggest increase in 13 months. The 12-month rate is 2.8%. JP Moran Chase raised its core PCE forecast to 3.1% this year.

At the same time, consumer spending rose less than expected, inflaming concerns of stagflation, which occurs when prices are rising while the economy contracts. The Atlanta Fed's GDPNow tool projects real GDP to decline 2.8% this quarter.

Consumer sentiment plummeted to the lowest level in two years in March, according to the University of Michigan survey, as Americans become increasingly concerned that Trump trade policies will stoke inflation and threaten jobs.

Benchmark 10-year Treasury yields fell under 4.3% as investors shifted toward the perceived safety of government debt. Tracking with yields, the dollar lost 0.3% against major rivals.

Platinum slipped 0.2% today but rose 0.3% this week. Palladium added 0.5% for a weekly rise of 2%.

New York spot gold gained $18.50 to $3,073.70; silver fell 44 cents to $34; platinum dipped 2.45 to $982.45; and palladium added $5.35, to $979.15 an ounce.