AGE Daily Gold Update

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

3/1/2023: Gold rises for third session

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.5% to close above $1,845 after mixed US data, strong China data, and rising Eurozone inflation pressured the dollar, lifting alternative store of value. It was the metal's highest finish in a week and third straight day of gains.

Manufacturing in the US edged up slightly in February, according to the ISM survey, but remained firmly in contraction for a fourth month as weak demand for goods continued to limit production. Prices for both raw materials and finished products rebounded, suggesting inflation could remain elevated for longer.

Following the ISM release, Fed fund futures traders increased their bets that the Fed will increase benchmark rates further that previously projected. The odds of a terminal rate of 5.5% to 5.75% are now 40%, up from 27% a week ago and zero a month ago.

Adding to global inflationary pressures, China's economy rebounded strongly last month as it emerges from last year's zero-Covid closures. Manufacturing activity rose at the fastest pace in a decade and services also grew more than forecasts.

Most analysts are expect that a rebound in China's economy will increase gold demand in the world's biggest gold-consuming nation, buoying global gold prices this year.

The dollar fell 0.4% against major rivals as the yuan rallied behind strong China data and the euro rose on expectations that the ECB will raise rate further to combat sharply higher inflation in Germany, Spain and France. A falling dollar lifts gold and other commodities by making them less expensive in other currencies,.

The other precious metals were also higher, with silver adding 0.1% while platinum and palladium picked up 1.2% and 0.7%, respectively.

At the Comex close: April gold gained $8.70 to $1,845.40; May silver added 2 cents, to $21.10; June palladium climbed $16.70 to $1,437.60; and April platinum picked up $6.30, to $961.80 an ounce.