Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close at $2,016 after a spate of weak US economic reports reinforced concerns about recession, boosting demand for safe-haven assets.

The Conference Board's index of Leading Economic Indicators tumbled 1.2% in March for its twelfth straight month of declines and biggest in three years. A composite of 10 metrics designed to gauge whether the economy is improving or getting worse, the LEI has been flashing a likely recession in 2023 for several months.

The Philadelphia Fed's gauge of regional business activity plunged further into the negative in April, posting its eighth consecutive month of contraction and the tenth in the past 11 months. The data reinforces yesterday's Beige Book report that manufacturing is flat or falling across the country.

First-time jobless claims rose to 245,000 last week, suggesting that the hot labor market is cooling somewhat and layoffs are on the rise.

Benchmark 10-year Treasury yields retreated under 3.6% as investors shed risk for the perceived safety of government debt. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar receded 0.2% against major rivals as traders viewed the weak economic data as further evidence that the Fed will pause rate hikes after one more in May. A weaker dollar lifts gold and other commodities by making them less expensive in other currencies, boosting demand overseas.

The other precious metals were also higher, with silver and palladium adding 0.1% each while platinum picked up 0.4%.

At the Comex close: June gold rose $8.70 to $2,016; May silver added 3 cents, to $25.40; July platinum climbed $4.80 to $1,110.50; and June palladium inched up 70 cents to $1,619.50 an ounce.