Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 0.4% to close above $1,948 after hawkish comments from Jerome Powell lifted Treasury yields and the dollar, pressuring alternative assets. It was the metal's third straight lower session.

Speaking at a global banking roundtable today, Fed Chair Powell added his voice to the chorus calling for more aggressive monetary tightening, saying a half-point hike "will be on the table" at the Fed's May meeting in two weeks.

Powell added that many Fed officials wanted a half-point increase in March but uncertainty over the Ukraine war stayed their hand. Most are now calling for pushing the benchmark rate about 2.5% this year to curtail the strongest inflation in 40 years.

10-year Treasury yields climbed back about 2.9% after Powell's comments, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar also edged higher, adding 0.2% against major rivals despite a stronger euro, which strengthened after prominent ECB officials signaled rate hikes as soon as the third quarter. A rising dollar weighs on gold and other commodities by making them pricier overseas.

Optimism that incumbent French President Emmanuel Macron may defeat far-right candidate Marine Le Pen in Sunday's runoff also boosted the euro.

The other precious metals were also lower, with silver falling 2.6% while platinum and palladium shed 2% and 1.7%, respectively.

At the Comex close: June gold dropped $7.40 to $1,948.20; May silver fell 65 cents to $24.62; July platinum fell $19.20 to $967.80; and June palladium shed $41.90 to $2,420.20 an ounce.