Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.1% to close under $1,695 despite abysmal economic data and falling risk appetite as traders liquidated long positions and rebalanced month-end portfolios. The metal still posted a 6.1% rise in April for its best month since last August.

Consumer spending plunged 7.5% in March, the biggest monthly drop on record, as the coronavirus forced businesses to shutter and more than 30 million American's to lose their jobs. An additional 3.9 million workers filed for first-time unemployment benefits last week, with job losses extending into manufacturing and professional services.

Personal income fell 2% in March, the most since early 2013, and the economy contracted at a 4.8% annualized rate in the first quarter, the most since 2008. The S&P 500 lost 1% amidst the grim data but still racked up its best month since 1987, rebounding 13%.

Meanwhile, inflation pressure fell as the Fed's preferred measure, the PCE gauge, dropped from 1.8% to 1.3% year-over-year behind tumbling energy prices. The softer inflation outlook spurred some trader to take profits from gold strong monthly rally, as gold is often held as a hedge against future loss of purchasing power.

The World Gold Council reported investment demand for gold rocketed to a four-year high during the first quarter, climbing 80% year-over-year to nearly 540 metric tons as investors sought protection from COVID-19 fallout.

The other precious metals were mixed for the day and month. Silver slid 2.2% but finished April 5.8% higher. Platinum added 1.7% for a monthly rise of 11.%. Palladium picked up 2% but still lost 15% this month.

At the Comex close: June fell $19.20 to $1,694.20; July silver lost 34 cents to $14.97; July platinum rose $13.40 to $813; and June palladium picked up $38.60 to $1,956 an ounce.