AGE Daily Gold Update

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

4/9/2024: Gold rises to another new record

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.5% to close at $2,343.50, another new record high, on safe-haven and momentum buying as yields slipped ahead of tomorrow's CPI release. The gold price has now risen in 13 of the past 14 sessions. Silver rose 0.6% to close at $27.98 an ounce.

Recent US economic data has been ambiguous. Inflation was stickier than expected in February while March payroll gains were unexpectedly robust. But the crucial US services sector, which employs nearly three out of every four Americans, weakened dramatically last month, suggesting a broader showdown may be coming.

Today, the National Federation of Independent Business (NFIB) reported that small-business sentiment fell in March to the lowest level in 11 years.

Fed fund futures traders have upped their bets for a June rate cut to a 56% likelihood from 49% yesterday. Tomorrow's release of the minutes from the Fed's March meeting should help to clarify the central bankers' thinking about when to reduce rates.

Just as import for the rate view will be tomorrow's release of the consumer price index data for March. Economists anticipate a rise of 0.3% for the month, down from 0.4% in February.

Benchmark 10-year Treasury yields slipped back under 4.4% as traders reassessed the Fed's rate-cut timeline. Falling yields boost gold by decreasing the opportunity cost for holding it instead of bonds for safety.

The dollar was virtually flat. Platinum and palladium picked up 1.2% and 3.4%, respectively.

At the New York spot close: gold gained $11.80 to $2,343.50; silver rose 18 cents to $27.98; platinum climbed $11.50 to $976.40; and palladium advanced $35.60 to $1,086.10 an ounce.