Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close near $1,819 after upbeat US data stoked whetted risk appetite, pressuring the dollar and lifting alternative stores of value.

Retail sales grew 0.9% in April, in line with most forecasts, suggesting solid momentum in the economy despite rampant inflation. Car dealers led the way at 2.2%, with web retailers adding 2.1% and bars and restaurants, a key segment, rising 2%.

Industrial production was also strong in April, rising 1.1% to notch the fourth straight month above 0.8%. But broken supply chains and renewed shortages may cloud the outlook moving forward after the Empire State index, a weathervane for US manufacturing, fell into contraction last month.

Wall Street cheered the data, with the Dow and S&P 500 rising 1.3% and 2%, respectively, while the Nasdaq climbed2.8%.

Benchmark 10-year Treasury yields rose to a one-week high above 2.9% as investors gold government bonds in favor of risk assets.

The dollar retreated 0.8% for the third losing session as traders shifted towards riskier currencies. A falling dollar typically lifts gold and other commodities by making them less expensive overseas.

The other precious metals were also higher. Silver rose 0.9%; platinum added 2%; and palladium climbed 1.5%.

At the Comex close: June gold gained $5.90 to $1,818.90; July silver added 20 cents, to $21.75; July platinum picked up $18.10 to $943.40; and June palladium rose $29.60 to $2,032.20 an ounce.