AGE Daily Gold Update

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

3/7/2024: Gold rallies on to new highs

Source: Bill Musgrave, American Gold Exchange

Austin — Gold’s record rally continued unabated, adding another 0.3% to close at a fresh all-time high above $2,165 as yields and the dollar fell on growing expectations that the Fed will pivot to lower interest rates in Q2. Spot gold has now risen more than $132 an ounce over the past six sessions.

Testifying on monetary policy before the Senate Banking Committee today, Fed Chair Jerome Powell said the central bank is “not far” from having the confidence in falling inflation to begin cutting interest rates.

Separately, Cleveland Fed President Loretta Mester echoed Powell’s semi-dovish message, saying the Fed can begin cutting rates this year if the economy and inflation evolve as expected.

Fed fund futures traders increased their bets on a June rate cut, lifting the odds to 74%, up from 63% a week ago.

Benchmark 10-year Treasury yields slipped again to just over 4.1% on the shifting rate view, boosting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar fell 0.3% against major rivals, supporting gold and other commodities by making them less expense overseas.

The approaching pivot toward easier monetary policy is not the only factor driving gold. Central bank purchases have been robust for the past nine months as governments try to hedge against currency and geopolitical risk. Retail physical demand in China and India, which together account for 70% of global gold buying, has also been sharply higher, lifting the gold price.

The other precious metals were mostly higher, with silver and platinum adding 0.4% and 1%, respectively, while palladium slid 0.6%.

At the New York spot close: gold gained $7 to $2,165.20; silver added a dime, to $24.37; platinum picked up $9 to $923.40; and palladium dropped $6.50 to $1,042.40 an ounce.