Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 1.6% to close under $1,924 as robust jobs data reinforced expectations of big rate hikes from the Fed, lifting the dollar and pressuring alternative stores of value. The metal also slipped 1.6% for the week.

The US economy added 431,000 jobs in March pushing the unemployment rate down from 3.8% to 3.6%, just above the pre-pandemic level of 3.5%, which was the lowest in 50 years. The print was slightly below forecasts of 490,000.

Hourly wages jumped sharply again last month, pushing the 12-month increase to 5.6%, the most since the early 1980s.

Following yesterday's report that the PCE index, the Fed's preferred inflation gauge, jumped to a 40-year high of 5.6% in February, the employment and wage data increased the likelihood that the Federal Reserve will aggressively raise interest rates in coming months.

The dollar added 0.3% against major rivals as Forex traders speculated that a series of half-point rate hikes are all but certain. Higher rates lift the buck by attracting Forex investment seeking higher yields, pressuring gold and other commodities in turn by making them more expensive in other currencies.

Not all of today's data was upbeat, however. The ISM reported US manufacturing activity declined in March to the lowest level since September 2020, the early throes of the pandemic, plagued by ongoing supply-chain problems.

Benchmark 10-year Treasury yields edged up slightly to 2.38% while 2-year yields pushed up above 2.45%, inverting the yield curve for the second time this week. An inverted curve is often seen as a harbinger of recession.

The other precious metals were mixed for the day and lower for the week. Silver lost 1.9% for a weekly decline of 3.8%. Platinum slipped 0.7% today and 2% this week. Palladium picked up 0.5% on the session but fell 5% on the week.

At the Comex close: June gold dropped $30.30 to $1,923.70; May silver fell 48 cents to $24.65; July platinum slid $7.20% to $988.60; and June palladium added $11.90, to $2,267.50 an ounce.