Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 1.9% to close above $2,038 as yields and the dollar declined further on weaker US economic data and growing expectations that the Fed will pause interest rate increases.

Job openings fell to a 21-month low, the Labor Department reported today, suggesting that the super-hot labor market may finally be cooling, something the Fed has been eager to see.

Separately, the Commerce Department said factory orders fell 0.7% in February, posting the third decline in the past four months. The soft report reinforces the recent ISM survey showing manufacturing dropped for a fifth straight month in March, with new orders falling into recession territory.

Benchmark 10-year Treasury yields retreated further on growing recession worries, plunging under 3.4% to the lowest level since early last September. Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar shed another 0.5% to reach a two-month low against major rivals on speculation that the Fed will pause rate hikes when it meets again in May. The odds of a pause are now around 60/40, according to Fed funds futures trading, the reverse of just yesterday.

A weaker dollar lifts gold and other commodities by making them less expensive in other currencies, boosting demand overseas.

The other precious metals were mostly higher, with silver and platinum climbing 4.5% and 3.3%, respectively, while palladium dropped 0.2%.

At the Comex close: June gold jumped $37.80 to $2,038.20; May silver rose $1.08 to $25.10; July platinum picked up $32.60 to $1,029; and June palladium slipped $2.30 to $1,455.70 an ounce.