AGE Daily Gold Update

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

3/13/2024: Gold rebounds ahead of key data

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rebounded by 0.7% to close at $2,180.80 despite an uptick in Treasury yields as the dollar edged lower ahead of key economic data to be released later this week. The gold price has now risen in nine of the last ten sessions on safe-haven inflows and expectations of lower interest rates from the Fed. Silver rose 3.2% to close at $24.96 an ounce.

Yesterday’s release of the February CPI report showed consumer inflation inching up 0.1% to an annual rate of 3.2%. The slightly hotter-than-expected print provided a marginal lift to yields and the dollar as traders pondered its possible effect on the Fed’s pivot to lower interest rates. It also prompted some profit-taking from gold’s rise of $170 an ounce over the previous eight days.

Today, gold recouped much of yesterday’s slide as bargain-hunters swept in and the markets decided that the Fed is unlikely to delay rate cuts. Fed fund futures trading places the odds of a June rate cut at 67%, down slightly from 70% before the release.

Data on retail sales and wholesale inflation, due tomorrow, should provide further clues.

The dollar fell nearly 0.2%, reversing all its gains from Tuesday and lifting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Also supporting the gold price, oil prices jumped nearly 3% on lower US crude inventories and reports of Ukrainian attacks on Russian energy infrastructure. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Capping gold’s rebound, benchmark 10-year Treasury yields rose to just under 4.2%. Rising yields pressure gold by increasing the opportunity cost for holding it instead of bonds for safety.

Platinum and palladium were also higher, gaining 1.8% and 1.9%, respectively.

At the New York spot close: gold gained $14.70 to $2,180.80; si8lver added 77 cents to $24.96; platinum picked up $16.70 to $944.90; and -0alladium rose $20.40 to $1,071 an ounce.