Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close at $1,814 as weak economic data raised concerns about global growth, stoking demand for safe havens.

New York's Empire State index of business conditions plunged more than 36 points in May to negative 11.2, with any reading below zero signaling contraction. New orders and shipments both declined sharply. The index is considered a key gauge of the health of US manufacturing.

The EU lowered its growth outlook for the eurozone economy for the next two years because of the Russian invasion of Ukraine. The region's GDP is now projected to grow 2.7% in 2022 and 2.3% in 2023, down from the respective 4% and 2.7% previously forecast.

China's economy has also hit a wall, with retail and factory activity decelerating sharply in April because of the resurgent pandemic and ensuing lockdowns.

Benchmark 10-year Treasury yields pulled back under 2.9% as investor flocked to the perceived safety of US government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked lower with yields, dipping 0.2% against major rivals. A weaker dollar typically lifts gold and other commodities by making them less expensive in other currencies, bolstering overseas demand.

The other precious metals were mostly higher, with silver and palladium adding 2.6% and 4.4%, respectively, while platinum dipped 0.6%.

At the Comex close: June gold gained $5.80 to $1,814; July silver climbed 55 cents to $21.55; July platinum slid $5.40 to $925.30; and June palladium rose $84.90 to $2,002.60 an ounce.