Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close at $1,826 as soft jobless data and renewed growth concerns weakened yields and the dollar, boosting alternative stores of value.

Initial claims for unemployment benefits rose to 225,000 last week, more than forecast, while continuing claims increased to more than 1.7 million, according to the Labor Department. While the job market remains relatively strong, rising continuing claims is considered an early signal of downturn.

In more bad news for the beleaguered housing market, mortgage rates crept higher this week, with the 30-year fixed pushing above 6.4%. Declining sales and deteriorating prices have tracked with the slowing economy and rising interest rates this year.

Benchmark 10-year Treasury yields fell as investors fret that China's reopening from its draconian zero-Covid policies may re-accelerate the pandemic elsewhere in the world, undercutting an already enfeebled global economy. Falling yields help gold by decreasing the opportunity cost for holding it.

The dollar fell 0.6% against major rivals after the US jobless data, boosting gold and other commodities by making them cheaper in other currencies.

The other precious metals were sharply higher, with silver adding 1.7% while platinum jumped 4.4% and palladium picked up 1.8%.

At the Comex close: February gold gained $10.20 to $1,826; March silver rallied 41 cents to $24.25; April platinum rose $44.80 to $1,065; and March palladium climbed $31.40 to $1816.40 an ounce.