Gold hits a seven-week high this morning, aiming for its best week since mid-December, powered by weaker U.S. Treasury yields and the dollar index.
Treasury yields fell to the lowest level in a month on Thursday after the U.S. imposed an array of sanctions on Russia. Benchmark U.S. bond yields remain stuck near that one-month low.
Gold rose in spite of strong U.S. retail sales figures and a steep drop in weekly jobless claims. U.S. initial jobless claims last week dropped to the lowest level since the pandemic began, according to data released Thursday by the Labor Department. Applications for new unemployment benefits reached 576,000, below the 700,000 that economists had expected.
The Dow has opened for the first time this morning above 34,000 and the S&P looks headed to hit another all-time high today.
China’s record first quarter rose on consumer spending, according to data released early Friday. Chinese GDP climbed 18.3% in the first three months of the year, in line with estimates.
Front-month gold futures rose 1.8% Thursday to settle at $1,766.80 an ounce on Comex. The June contract is up 1.3% so far this week. The yellow metal rallied for the first time in three weeks last week. Futures slipped 0.8% in March after posting their worst month since 2016 in February. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. The June contract is currently up almost $10 an ounce to $1,776.10 and the DG spot price is $1,774.30.
Treasurys had soared in recent months as investors turned to them as a hedge against inflation that may be triggered by global stimulus efforts as the world’s economy attempts to emerge from the coronavirus pandemic. The COVID-19 virus has killed more than 2.98 million people worldwide and sickened more than 138.8 million. About 23% of the cases — and 19% of the deaths — are in the U.S. The country has almost 31.5 million cases, more than any other nation.
May silver futures increased 1.7% Thursday to settle at $25.96 an ounce on Comex. The contract added 2.5% in the first four days of the week. Silver dropped 7.2% in March after decreasing 1.8% in February, its first retreat in three months. It gained 1.9% in January and 47% in 2020. The May contract is up $0.216 an ounce to $26.180 and the DG spot price is $26.13.
Spot platinum advanced 1.9% Thursday to $1,205.30 an ounce and is down 0.6% so far this week. Platinum was flat in March after rallying 11% in February amid forecasts for higher demand and tighter supplies. The autocatalyst metal rose 0.5% in January and 11% in 2020. Currently, the DG spot price is slight off, down $2 an ounce, to $1,202.20.
Spot palladium gained 1.9% Thursday to $2,757.50 an ounce and increased 3.5% in the first four days of the week. Palladium advanced 13% in March. The metal gained 4.9% in February, plummeted 9% in January and rallied 26% in 2020. The DG spot price for palladium is currently up over $25 an ounce to $2,784.50.
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