AGE Daily Gold Update

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

3/25/2024: Gold gains on dollar, oil

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.8% to close at $2,176.40 as the dollar retreated and the oil price jumped, fueling demand for inflation hedges and alternative stores of value. Silver picked up 0.2% to close at $24.76 an ounce.

The US dollar shed 0.2% against major rivals, retracing some of last week’s rally, as the yen rebounded of reports that the Bank of Japan will step in to prop-up the weakening currency. A rallying yuan also weighed on the buck following reports than China has ordered state banks to buy yuan and sell dollars in the open market.

A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies, stimulating demand overseas.

Oil jumped 1.7% to $82 per barrel on concerns that escalating turmoil in the Russia-Ukraine and Hamas-Israel wars will further disrupt global supplies. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Gold continues to be supported by last week’s Fed meeting, which signaled three rate cuts are still on the table for 2024. Chicago Fed President Austan Goolsbee reinforced that stance view today, though would not commit to a start date.

Fed fund futures trading puts the odds of the initial quarter-point cut in June at 71%, up from 55% a week ago. This Friday’s release of the Commerce Departments PCE index, the Fed’s preferred inflation gauge, should provide more clarity on the rate view.

Platinum and palladium rose 1.2% and 1.5%, respectively.

At the New York spot close: gold gained $16.40 to $2,176.40; silver added a nickel, to $24.76; platinum picked up $10.40 to $908.80; and palladium advanced $15 to $1,013.30 an ounce.