AGE Daily Gold Update

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

3/2/2023: Gold dips on data, rate view

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.3% to close under $1,841 as yields and the dollar rose on hot labor market data, undermining alternative stores of vale and ending the metal's three-day winning streak.

First-time jobless claims fell again last week and labor costs rose more than expected in the fourth quarter, reflecting a labor market that shows few signs of slowing down.

New unemployment claims held below 200,000 for the seventh straight week. Wage growth surged 3.2% in Q4, suggesting that underlying inflation pressures are even greater than previously thought.

Benchmark 10-year Treasury yields pushed above 4% for the first time since November and 2-year yields hit a 16-year high of 5% as traders speculated that the Fed will have to be even more aggressive with rate hikes to contain inflation. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

The dollar tracked higher with yields, adding 0.5% against major rivals. A stronger dollar weighs on gold and other commodities by making the pricier in other currencies, limiting demand overseas.

The other precious metals were mixed, with silver sliding 0.9% while platinum and palladium picked up 0.2% and 0.5%, respectively.

At the Comex close: April gold dipped $4.90 to $1,840.50; May silver slid 19 cents to $20.90; April platinum added $1.40, to $963.20; and June palladium advanced $7.30 to $1,444.90 an ounce.