AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

3/5/2024: Gold closes at all-time high

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained another 0.7% to close at an all-time high near $2,142 as a new round of soft US data undercut Treasury yields, boosting alternative stores of value. The metal has now risen 5.3% in the past four sessions.

The US services sector slowed more than expected in February, according to the ISM, but held above contraction for fifteenth straight month. Employment in services industries, which employ around two-thirds of Americans, contracted for the second time in three months.

Separately, US factory orders fell 3.6% in January, more than forecast, on fewer contracts for Boeing airliners. But durable goods orders plunged 6.2% and non-transportation factory orders fell 0.8%.

Benchmark 10-year Treasury yields pulled back sharply, notching their biggest daily drop in more than a month, as traders increasingly anticipate a pivot to lower interest rates by the Fed. Falling yields lift gold by reducing the opportunity costs for holding it instead of bonds for safety.

Moderating inflation and softer US data has shifted sentiment back toward the belief that the Fed will begin cutting interest rates by June. Fed Chair Jerome Powell’s testimony before Congress this week should provide additional clues, as will the government's nonfarm payrolls report on Friday.

Momentum in the gold price is also the result of strong physical buying in China and India, aggressive central bank purchases over the past eight months, and safe-haven demand because of increasing geopolitical instability.

The other precious metals were mixed, with silver inching up slightly while platinum and palladium fell 1.9% and 2.7%, respectively.

At the New York spot close: gold gained $15.60 to $2,141.90; silver added 2 cents, to $23.76; platinum slid $17.10 to $887.20; and palladium shed $26.30 to $938.60 an ounce.