Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up by less than 0.1% to close above $1,842 as safe-haven inflows from falling equities overcame a mild rebound in the dollar. The metal finished the week 1.4% higher for its first weekly win in a month. Silver dropped 1.1% today but still rallied 3.3% this week.

All three main US equity indexes dropped as investors shed risk in the face of a slowing economy, high inflation, and the prospect of sharply higher interest rates. The Dow and S&P 500 lost around 0.3% while the Nasdaq fell 0.6%.

Recent hawkishness from the Fed has put markets on edge. Chair Powell admitted this week that "there could be some pain" for Americans as the Fed scrambles to contain inflation by jacking up the cost of money. Several officials signaled that a 75-basis rate hike is back on the table only two weeks after Powell said it is not being actively considered.

Benchmark 10-year Treasury yields retreated for a third day, pulling back under 2.8% as investors flocked toward the safety of government debt. Falling yields support gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Gold's gains were capped by a rebounding dollar, which bounced 0.3% higher against major rivals on bargain-hunting. The buck fell 1.4% this week, lifting gold by making it less expensive in other currencies.

Platinum and palladium fell 1.3% and 2%, respectively.

At the Comex close: June delivery added 90 cents, to $1,842.10; July silver lost 23 cents to $21.67; July platinum slid $12.60 to $941.10; and June palladium shed $38.70 to $1,939.70 an ounce.