Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 1.4% to close at a one-week high above $1,841 as weak US data stoked demand for safe havens, pressuring bond yields and the dollar while lifting precious metals.

The index of US economic indicators fell 0.3% in April as consumer confidence and spending waned against the backdrop of spiking inflation and slowing global growth. Existing home sale fell 2.4% last month for the third straight month of declines. And first-time jobless rose to a four-month high of 218,000 last week.

The data underscored growing worries over a slowing economy while the Fed is embarking on the most aggressive tightening program in decades. Fed Chair Jerome Powell admitted earlier this week that "there could be some pain" in financial markets as the central bank struggles to contain rampant inflation.

Benchmark 10-year Treasury yields fell back under 2.8% midday as investors flocked to the perceived safety of government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tumbled more than 1% against major rivals as softer US data pushed Forex investors into haven currencies like the yen and Swiss franc. A weaker dollar lifts gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with silver and platinum jumping 1.7% and 3.2%, respectively, while palladium slipped 0.7%.

At the Comex close: June gold climbed $25.30 to $1,841.20; July silver added 36 cents, to $21.91; July platinum rose $27.30 to $953.70; and June palladium slid $14.20 to $1,978.40 an ounce.