AGE Daily Gold Update

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

3/26/2024: Gold edges up, yields edge down

Source: Bill Musgrave, American Gold Exchange

Austin — Spot gold edged up less than 0.1% to close at $2,177.20 on mixed US economic data and slightly lower Treasury yields as the markets await Friday’s PCE inflation report, which could supply new clues about the timing of rate cuts from the Fed. Silver dropped 1% to $24.48 an ounce.

Consumer confidence fell to a four-month low in March, the Conference Board said, as Americans worry about sticky inflation and the 2024 presidential election. Consumer spending makes up around 70% of GDP.

On the plus side, durable goods orders rose 1.4% in February, more than forecast, and business investment picked up, perhaps signaling a rebound in the beleaguered manufacturing sector. Yet shipments of manufactured goods dropped, which may weigh on GDP.

Benchmark 10-year Treasury yields dipped as the downbeat data helped to consolidate speculation that the Fed is likely to launch rate cuts in June. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Fed fund futures trading currently puts the odds of a quarter-point cut in June at 71%. But this Friday’s release of the personal consumption expenditures index, the Fed’s preferred inflation gauge, could influence the rate view in either direction.

The dollar edged up less than 0.1%, capping gold’s rise, as the yen slipped after Japan’s finance minister talked down the currency’s recent rally.

Platinum added less than 0.1% while palladium dropped 1%.

At the New York spot close: gold inched up 80 cents to $2,177.20; silver shed 26 cents to $24.48; platinum picked up 50 cents to $909.30; and palladium lost $10.20 to $1,003.10 an ounce.