Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.4% to close near $1,899 as rising inflation concerns combined with near-flat Treasury yields and a falling dollar to boost demand for alternative stores of value.

Speaking at the G-7 finance meeting in London yesterday, Treasury Secretary Janet Yellen admitted that inflation is likely to rise because of the $4 trillion Biden budget plan. But she emphasized that the pricing pressure should be temporary and, given the wide-spread benefits of improving the national infrastructure, acceptable.

Treasury yields were little moved by the prospect of higher inflation, with benchmark 10-year yields adding 2 basis points, to 1.575%. Yields fell sharply on Friday after soft federal nonfarm payrolls report showed the labor market still struggling from the pandemic.

The dollar fell 0.2% against major rivals, slipping back toward multi-month lows, as traders discounted the likelihood of premature monetary tightening by the Federal Reserve after Friday's jobs data. A weaker dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with silver adding 0.4% while platinum picked up 0.9% and palladium dipped 0.2%.

At the Comex close: August gold gained $6.80 to $1,898.80; July silver rose 12 cents to $28.02; July platinum climbed $10.40 to $1,174.80; and September palladium slipped $4.50 to $2,837.70 an ounce.