Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close above $1,964 after falling import prices, following this week's softer CPI and PPI reports, reinforced expectations that the Fed is nearing the end of its rate-hike cycle. The metal finished the week 1.7% higher for its biggest weekly rise since early April.

US import prices fell 0.2% in June, the Labor Department said today, and are down 6.1% over the past 12 months. The prices of imported goods have now fallen every month this year except April.

The data adds to the overall sense that inflation is on the way out. This week's release of the June CPI showed annualized consumer inflation falling to just 3%, while the PPI report showed wholesale inflation falling to a 12-month rate of just 0.1%.

Fed fund futures traders now expect the central bank to raise interest rates by 25 basis points at the July meeting and then be done with rate hikes for the rest of the year.

Benchmark 10-year Treasury yields fell sharply this week to under 3.8% on the rosier inflation outlook, helping to lift gold by decreasing the opportunity cost for holding it instead on bonds. Yields rebounded slightly today, however, after Fed Governor Christopher Waller reiterated his preference for a second rate hike this year.

The dollar rebounded slightly after a week of deep losses, adding up 0.1% after falling to a 13-month low on the shifting rate expectations. A weaker dollar supports gold by making it less expensive on other currencies.

The other precious metals were mixed for the day but higher for the week. Silver rose 1% to notch a weekly increase of 8.2%, its biggest since mid-March. Platinum added 0.1% to day and 7.2% this week. Palladium lost 2% for the session but picked up 1.7% for the week.

At the Comex close: August gold rose 60 cents to $1,964.40 September silver climbed 24 cents to $25.19; October platinum picked up 90 cents to $984.30; and September palladium shed $25.40 to $1,266.40 an ounce.