Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 2.4% to close above $2,043 as concerns about the Ukraine war and inflation drove demand for safe havens and alternative stores of value. It was the metal's highest finish in 19 months and only $26 below its all-time high of $2,069, recorded in August 2020.

President Biden announced a ban on Russian oil and other energy imports today to pressure Russia into breaking off its brutal invasion of Ukraine. The move came with bipartisan support, a rarity in Washington.

The war and associated sanctions are expected to accelerate US inflation, already running at a 40-year high. Wheat prices have surged toward all-time highs, with Ukraine and Russia accounting for 25% of global wheat exports. Corn futures have jumped nearly 10% this month, and soybeans are up 24% so far this year.

Optimism among US small businesses fell to a one-year low, according to the National Federal of Independent Business, with 26% of owners saying inflation is their leading concern, the most since 1981.

The US trade deficit increased 9.4% a record $89.7 billion in January, creating a large drag on GDP. The Atlanta Fed is projecting real GDP growth, net inflation, at around 0.5% in the first quarter, according to data released today.

Oil prices spiked higher on the Russian ban, with US benchmark WTI cruse rising another 4.6% to nearly $125 per barrel, the most since 2008. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 4.6% while platinum and palladium rose 3.3% and 2.3%, respectively.

At the Comex close: April gold gained $47.40 to $2,043.30; May silver climbed $1.18 to $26; April platinum added $36.60, to $1,153.20; and June palladium picked up $66.60 to $2,968.50 an ounce.