Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 0.8% to close above $1,780, the highest level in nearly two months, as a falling dollar and rising geopolitical tensions fueled demand for alternative assets despite upbeat US economic data. The metal ended the week 2% higher for its biggest weekly rise since mid-December.

President Biden hit Russia with stiff sanctions yesterday for hacking US corporations and government offices, election interference, and other "malign activities." Designed to be quite costly to the Russian economy, the penalties are expected to provoke retaliation and increase tensions between the two nations.

Meanwhile, reports on the US recovery continue to be strong. Consumer sentiment rose to a 13-month high this month, according to the University of Michigan survey, as stimulus checks and the rollout of vaccinations buoy optimism that normalcy is returning. Housing starts jumped nearly 20% in March, signaling a resurgence in this crucial sector.

Wall Street marched higher on the upbeat data and strong quarterly earnings. The Dow and S&P 500 added 0.5% and 0.4%, respectively, to new record highs, while the Nasdaq edged up 0.1%.

Treasury yields edged slightly higher on the rising risk sentiment but still hover near a one-month low. Weaker yields have spurred gold's rally this week by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar pulled back again, dropping 0.2% against major rivals. Pressured by falling yields, the buck fell 0.7% for the week to hit one-month low, lifting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

The other precious metals were higher for the day and mixed for the week. Silver added 0.5% for a weekly rise of 3%. Platinum climbed 0.7% today but dipped $1 this week. Palladium jumped 1.3% for a weekly increase of 5%.

At the Comex close: June gold added $13.40, to $1,780.20; May silver rose 14 cents to $26.11; 3% weekly rise; July platinum picked up $8.50 to $1,208.70; and June palladium jumped $35.30 $2,774.70, another record high.