Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold recouped 1.1% to close at $1,939 after prospects dimmed for a Ukraine ceasefire, undercutting equities and the dollar while lifting alternative stores of value. It was the metal's first higher finish in the past four sessions.

Yesterday's high hopes for progress in the Ukraine war came back to earth today as the Kremlin dismissed Ukrainian proposals while intensifying attacks on Kyiv and other cities. US officials cast doubt on Russia's pledge to pull back troops, saying forces were moved merely for repositioning.

Risk appetite reversed on the reality check, with the Dow slipping 0.2% while the S&P 500 and Nasdaq dropped 0.6% and 1.2%, respectively. The markets generally shook off data from ADP showing private payrolls added 455,000 jobs in March.

Benchmark 10-year Treasury yields also retreated as investors shifted toward safe-haven assets, ending the brief inversion of the yield curve between 2-year and 10-year yields. An inverted yield curve occurs when short-dated yields exceed long-dated, and is often seen as a harbinger of recession.

The dollar fell 0.6% against major rivals, especially the euro, after sharply higher inflation readings in Germany fueled speculation that the ECB will need to tighten monetary policy sooner than expected. A weaker dollar supports gold and other commodities by making them less expensive in other currencies.

Oil rebounded nearly 3% on softer US crude inventories and fading hopes for a Ukraine ceasefire. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 1.5% while platinum picked up 2.3% and palladium climbed 6.2%.

At the Comex close: June gold gained $21 to $1,939; May silver added 38 cents, to $25.11; July platinum rose $22.40 to $1,001.20; and June palladium jumped $130.40 to $2,243.10 an ounce.