AGE Daily Gold Update

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

4/15/2024: Gold gains on safe-haven demand

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.4% to close at $2,365.80, yet another new record, on safe-haven inflows because of escalating Middle East turmoil. The gold price has now risen in 16 of the past 18 sessions, posting a new all-time high almost every day. Silver added 1.4% to close at $28.71 an ounce.

Iran fired more than 200 exploding drones and missiles at Israel over the weekend in retaliation for its recent strike on Iran's embassy in Damascus, which killed a high-ranking general. While mostly intercepted without damage, the barrage was the first direct attack on Israel by another country in more than 30 years, significantly escalating the threat of a wider war in the region.

Against this concerning backdrop, upbeat US economic data limited gold's rise by lifting the dollar and Treasury yields.

Retail sales jumped 0.7% in March, more than doubling forecasts, and totals for February were revised higher to 0.9% instead of 0.6%. Retail sales comprise around one-third of consumer spending, which in turn accounts for two-thirds of GDP.

The Empire State manufacturing survey advanced from negative 20.9 in March to negative 14.3 in April, fueling optimism that the New York Fed region may be pulling out of its five-month contraction.

Benchmark 10-year Treasury yields rose to a five-month high above 4.6% as traders speculated that the strong retail sales data could further delay prospects for rate cuts from the Fed. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking higher with yields, the dollar rose 0.2%, adding headwind from gold and other commodities by making them pricier in other currencies.

Meanwhile, the VIX volatility index, known as Wall Street's "fear gauge," surged to a six-year high as investors hedged against the possibility of a stock market crash.

Platinum and palladium dropped 2.1% and 1.5%, respectively.

At the New York spot close: gold gained $9.60 to $2,365.80; silver rose 39 cents to $28.71; platinum shed $21.20 to $972; and palladium retreated by $15.60 to $1,043.90 an ounce.