AGE Daily Gold Update

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

4/2/2024: Gold closes at new all-time high

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold surged 1.1% to a new record close at $2,261 as the escalating conflict in the Middle East combined with rising concerns about sticky inflation to drive investors into the metal as a safe haven and inflation hedge. The gold price has risen nearly 5% over the past six sessions to all-time highs despite headwinds from higher yields and a strong dollar. Silver rocketed 3.4% higher to $25.92 an ounce.

Israeli airstrikes on an embassy compound in Damascus killed two Iranian generals and five military advisors whom Israel claimed were responsible for Syrian attacks on Israeli targets. Iranian Supreme Leader Ayatollah Ali Khamenei has vowed revenge, significantly raising the risk of further escalation in the volatile region.

Meanwhile, strong US economic data continues to signal that inflation may stick around longer than the Fed or the markets would wish. US factory orders rose 1.2% in February after two straight months of declines, the Commerce Department said. The data comes one day after the ISM reported US manufacturing grew in March for the first time since September 2022.

Benchmark 10-year Treasury yields rose to the highest levels since November, trading near 4.4% as traders speculated that the Fed may be less inclined to begin cutting interest rates in June. Fed fund futures now put the odds of a June cut at 58%, down from more than 70% last week.

Ordinarily, high yields weigh on gold by increasing the opportunity cost for holding it. But bullish sentiment for the metal is sweeping past this traditional impediment.

Gold is being bought as protection against rising prices, currency risk, and geopolitical uncertainty. In addition, aggressive central bank purchases and retail physical demand, especially in China, are helping to lift the global gold price.

The dollar slipped 0.2% after reaching a five-month high earlier in the session, supporting gold by making it cheaper overseas.

Platinum jumped 2.4% while palladium was nearly flat.

At the New York spot close: gold gained $24.50 to $2,261; silver surged 85 cents to $25.92; platinum picked up $21.30 to $922.20; and palladium edges up 30 cents to $1,004.40 an ounce.