Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat, edging down less than 0.1% to close under $1,779, as strong US data lifted yields and the dollar while equity markets treaded water ahead of tomorrow's conclusion of the Fed's meeting.

Consumer confidence jumped again in April, according to the Conference Board, hitting a 14-month high behind accelerating vaccine rollouts and a strengthening labor market. The index pushed above 121 from 109 in March, which was already the highest since February 2020.

Home prices continue to race upward as the economy recovers and mortgage rates remain low. The Case-Schiller index surged nearly 12% in February, the most recent month of record, with all tracked cities lifted by strong demand and severely limited inventory.

Stocks were little changed as the markets await earning reports, due this week, and tomorrow's statement on policy from the Federal Reserve. While no alterations in interest rates or quantitative easing are expected, traders will scour the statement for any signals that the central bankers are worried about inflation.

Benchmark 10-year Treasury yields climbed 5.4 basis points, its biggest daily rise in four weeks, to move back above 1.6%. Rising inflation and stronger US data have led to speculation that Fed could soften its forward guidance on interest rates, which it has pledged to hold near zero until 2024.

Higher interest rates and yields create headwinds for gold because they increase the opportunity cost for hold the metal instead of bonds as a safe-haven asset.

The dollar also ticked up slightly on the upbeat data, pressuring gold by making it more expensive in other currencies, limiting overseas demand.

The other precious metals were higher, with silver climbing 0.8% while platinum and palladium added 0.4% and 1.5%, respectively.

At the Comex close: June gold dipped $1.30 to $1,778.80; May silver picked up 20 cents to $26.41; July platinum added $4.30, to $1,249.50; and June surged another $43.30 to a new record at $2,952.60 an ounce.