Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.1% to close at $1,925 as hawkish comments from Jerome Powell and a surprising rate hike from the Bank of England lifted yields and the dollar, punishing alternative store of value. It was the metal's lowest finish in three months.

Fed Chair Powell concluded his semi-annual Congressional testimony on monetary policy by telling the Senate Banking Committee that more rate hikes are coming. The central bank's pause in June was not the end of the rate-hike cycle, Powell emphasized, but rather a way to slow the pace after 10 straight meetings with rate increases.

The Fed's hawkish view was reflected in a wave of hikes by European central banks this week. Norway, Switzerland, Turkey, and England all lifted rates again to combat stubborn inflation. The Bank of England was especially aggressive with a hike of 50-basis points today, exceeding expectations.

Benchmark 10-year Treasury yields rose on the rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked higher with yields, adding 0.3% against major rivals. A rising dollars weighs on gold and other commodities by making them pricier overseas.

The bigger-than expected BoE rate hike prompted oil to tumble 4% on concerns about the strength of the global economy. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Gold's losses came despite some dour economic data. First-time US jobless claims held at 264,000 last week, the highest level since late 2021. And the Conference Board's index of Leading Economic Indicators fell 0.7% in May for its fourteenth straight monthly decline. The LEI measures whether the economy is improving or getting worse.

The other precious metals were also lower, with solver sliding 1.5% while platinum and palladium lost 2.4% and 5.3%, respectively.

At the Comex close: August gold fell $20 to $1,925; July silver slid 35 cents to $22.60; July platinum dropped $23.20 to $925.80; and September palladium shed $63 to $1,281 an ounce.