Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.3% to close under $1,769 as upbeat US economic news lifter risk appetite and yields, weighing on demand for safe-haven assets.

US GDP surged 6.4% in the first quarter, the government said today, as accelerating vaccinations, decreasing Covid cases, and massive fiscal stimulus fueled growth. Consumer spending rose nearly 11% behind generous unemployment benefits and a combined $2,000 in direct payments to most Americans.

Separately, first-time filings for unemployment benefits fell again last week to a new pandemic low, meaning fewer companies have laid off workers and more have been hiring.

Wall Street cheered the welcome data, with the Dow and S&P adding 0.6% to reach new all-time highs. Yesterday's dovish Fed policy statement and remarks from Fed Chair Jerome Powell underscoring the central bank's commitment to continued monetary easing also stoked sentiment.

Benchmark 10-year Treasury yields climbed again as investors shifted out of bonds, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset. The dollar was little changed.

The other precious metals were mostly lower, with silver and platinum shedding 0.1% and 1.2%, respectively, while palladium rose 0.6%

At the Comex close: June gold slid $5.60 to $1,768.30; July silver dipped 3 cents to $26.09; July platinum dropped $14.60 to $1,197.60; and June palladium added $18.40, to $2,948.60 an ounce.