Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.8% to close under $2,021 after weak US data and hawkish comments from a dovish Fed member stoked safe-haven inflows into the dollar, pressuring alternative stores of value.

First time US job less claims jumped by 22,000 to 264,000 last week, the highest level since October 2021, suggesting some increasing slack in the labor market. The four-week moving average rose to 245, 250, the highest since November 2021.

The producer price index rose 0.2% in April, less than forecast, bringing the annual wholesale inflation rate down to 2.3% from 2.7% in March. The April print was the lowest since January 2021. The consumer price index fell to 4.9% in April but remains well above the Fed's 2% target.

While both consumer and wholesale inflation are coming down, prices have remained sticky enough for Minneapolis Fed President Neel Kashkari to voice concern. Often one of the more dovish Fed members, Kashkari today voiced alarm that high consumer prices have proven "pretty persistent" and may require rates to stay high for longer.

The dollar jumped 0.6% on the soft data, returning to its occasional status as a safe-haven currency. A rising dollar weighs on gold by making it price overseas.

Cushioning gold's fall, benchmark 10-year Treasury yields slid back under 3.4% as investors headed into the perceived safety of government bonds. Lower yields support the metal by decreasing the opportunity cost for holding instead of bonds as a safe-haven asset.

The other precious metals were also lower, with silver tumbling 4.8% while platinum dropped 1.3% and palladium lost 3.2%.

At the Comex close: June gold fell $6.60 to $2,020.50; July silver slid $1.23 to $24.42; July platinum lost $14.10 to $1,105; June palladium shed $51.10 to $1,554 an ounce.