AGE Daily Gold Update

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

3/22/2019: Gold rises for third weekly win

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.4% to close above $1,312 as weak manufacturing data in the US and Europe stoked safe-haven demand despite a stronger dollar. The metal finished the week 0.7% higher for its third straight weekly gain.

The HIS Markit flash purchase mangers index for US manufacturing fell to a 21-month low in March, the latest sign that growth is slowing. Factory goods production hit a 33-month low and new orders also fell as business sentiment soured and exports slackened. The Markit PMI for service industries also slid to a two-month low.

The yield curve on spreads between 3-month US Treasury bills and 10-year notes inverted for the first time since 2007, meaning short-term bonds are yielding more than medium term bonds. Recessions have followed the last nine times this curve has inverted, according to the San Francisco Fed.

The US ran the largest monthly budget deficit ever in February, a shortfall of $234 billion, leading the CBO to project an annual deficit of $897 billion, or 4.2% of GDP.

Eurozone manufacturing also weakened, with the Markit PMI falling more than expected as the region risks falling into recession. Germany, the bloc's largest economy, plunged to the lowest reading in more than six years.

Capping gold's gains, the dollar rose 0.7% against major rivals as worrisome Eurozone data undermined the euro, driving Forex investors into safer havens. A rising dollar typically weighs on gold and other commodities by making them more expensive overseas.

The other precious metals were lower for the day and mixed for the week. Silver dipped 0.2% but held onto a weekly gain of 0.5%. Platinum dropped on the day 1.5% but rose 2% on the week. Palladium fell 2.7% today and 0.2% this week.

At the Comex close: April gold gained $5 to $1,312.30; May silver slid 3 cents to $15.41; April platinum fell $12.70 to $848.40; and June palladium lost $42.40 to $1,515.50 an ounce.