Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.5% to close just above $1,725 as upbeat US data lifted risk appetite and the dollar, pressuring safe-haven assets.

First-time jobless claims fell to 684,000 last week, the lowest since the pandemic started, as vaccine rollouts and regional reopenings accelerated the recovery. In addition, GDP grew at 4.3% during Q4, according to government figures, up from previous reports of 4.1%.

Stocks rallied on the improved jobless data, with the Dow and S&P 500 picking up 0.6% each while the Nasdaq added 0.3%.

Meanwhile, Treasury yields rose as rising risk appetite prompted investors to rotate away from safe havens, pressuring bond prices. Rising yields are a headwind for gold, which produces no yield of its own, because they increase the opportunity cost for holding it instead of bonds.

The dollar tracked higher on the prospects of a faster recovery, adding 0.4% against major rivals to hit a four-month high. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

The other precious metals were also lower, with silver dropping 0.7% while platinum and palladium fell 2.2% and 0.9%, respectively.

At the Comex close: April gold slid $8.10 to $1,725.10; May silver dropped 18 cents to $25.05; April platinum fell $26 to $1,154.20; and June palladium shed $24.70 to $2,615.40 an ounce.