Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rallied 1.2% to close near $3,123, at yet another all-time high, as global concerns about Trump tariffs drove investors into safe havens. Rising 10% in March, bullion gained a whopping 20% in Q1, its biggest quarter since 1986, while establishing 19 new record highs. Silver gained 10% this month and 18.4% this quarter.

President Trump threatened yesterday to impose new tariffs of 25% to 50% on purchasers of Russia oil if Moscow fails to cooperate with Ukraine peace efforts. The new tariffs would be on top of the reciprocal tariffs and 25% auto tariffs that are scheduled to start this week.

The whirlwind of tariffs is taking its toll on consumer confidence, which has fallen to a multi-year low. Worries about stagflation, a pernicious combination of inflation and economic slowing, is creating confusion in the markets on stoking risk-off sentiment.

Benchmark 10-year Treasury yields fell under 4.2% on recession worries, dropping below the 200-day moving average, as investors sought safety. Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds.

Gold's historic rally has been driven by global retail investors seeking shelter from economic and political turmoil, as well as central banks seeking to hedge their risk in dollar reserves. Both trends are expected to continue in Q2.

Platinum added 7.4% this month and 11.9% this quarter. Palladium picked up 10% in March and 11.2% in Q1.

At the New York spot close: gold gained $36.30 to $3,122.80; silver rose 49 cents to $34.46; platinum climbed $26.75 to $1,009.70; and palladium added $15, to $995.15 an ounce.