AGE Daily Gold Update

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

3/6/2024: Gold scores another record high

Source: Bill Musgrave, American Gold Exchange

Austin — Extending its record rally, gold added another 0.8% to close at a new all-time high above $2,158 as yields and the dollar retreated after Jerome Powell signaled that lower interest rates are on the way. It was the metal’s fifth straight winning session.

Speaking to the House Financial Services Committee, Chair Powell said the Fed is on a “good path” to achieving its 2% target, with interest rates probably at their peak. Without committing to a timeline, Powell acknowledged that “it will likely be appropriate to begin dialing back policy restraint” later this year.

Benchmark 10-year Treasury yields retreated to just over 4.1% as traders speculate that the first quarter-point rate cut will come in June. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar dropped 0.3% against major rivals, including a one-month low versus the euro. A weaker dollar lifts gold and other commodities by making them cheaper in other currencies.

ADP said private payrolls added 140,000 jobs in February, fewer than forecast. The Fed’s Beige Book reported that growth picked up in most regions as inflation moderated, although consumer spending decreased.

The other precious metals were also sharply higher, with silver rising 2.1% while platinum picked up 3,1% and palladium surged an eye-popping 11.8% to breach $1,000 an ounce for the first time since January.

At the New York spot close: gold gained $16.30 to $2,158.20; silver rose 51 cents to $24.71; platinum climbed $27.20 to $914.40; and palladium leapt $110.30 to $1,048.90 an ounce.