Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.7% to close just under $2,360 as the dollar and yields pulled back on what Fed Chair Jerome Powell called a "mixed" report on wholesale inflation. Silver added 0.9% to finish at $28.49 an ounce.

The producer price index rose 0.5% In April, more than expected, pushing the 12-month rate to 2.2% from 1.8%. But the March PPI was revised lower, from the 0.2% gain initially reported down to a negative 0.1%.

Speaking in Amsterdam, Jerome Powell downplayed the stickiness of the inflation data, calling the report more "mixed" than "hot" and expressing confidence that consumer inflation remains on track for the Fed's target 2%.

Apparently focusing more on the March revision than the April print, Fed funds futures traders now see a 66% likelihood of a quarter-point rate cut in September, up from 61% yesterday, according the CME FedWatch.

Tomorrow's CPI report should give further clarity on the course of inflation and therefore interest rates.

Benchmark 10-year Treasury yields retreated slightly after the PPI release, supporting gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar lost 0.2% against major rivals, boosting gold and other commodities by making them less expensive in other currencies.

Platinum and palladium jumped 3.3% and 1.7%, respectively.

At the New York spot close: gold gained $16.90 to $2,359.90; silver added 26 cents, to $28.49; platinum picked up $33.80 to $1,044.60; and palladium rose $16.60 to $982.40 an ounce.