Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.2% to close at $3,182 as equities and the dollar rose on easing trade-war tensions with China despite another round of weak US economic data. Bullion fell 4.6% for the week. Silver shed 1% today and 2% this week to finish at $32.16 an ounce.

Consumer sentiment slumped for the fifth straight month as trade wars and inflation fears soured Americans on their financial outlook. Current assessments of personal finances dropped 10% on expectations of lower income. Meanwhile, inflation expectations for the upcoming year surged to 7.3% from 6.5% last month

Accounting for 70% of GDP, consumer spending has fallen in recent months but not as far as sentiment, which tends to front-run spending.

Held in check by a sharp decline in global oil prices, the cost of imported goods rose merely 0.1% in April. But prices on many goods like cars and industrial supplies are rising sharply as tariffs begin to take effect, according to the Labor Department.

Wall Street shook off the down data as traders, reveling in this week's trade agreement between the US and China, pursued risk assets. The Dow rose another 0.8% while the S&P 500 added 0.6% and Nasdaq 0.4%.

The dollar added 0.2% against major rivals, notching a weekly rise of around 0.8% for its best week in nearly three months. A stronger dollar weighs on gold and other commodities by making them more expansive in other currencies.

While gold has taken the brunt of risk-on trade this week, it remains strongly supported by central bank buying and aggressive physical demand in Asia. China's central bank added to its gold reserves in April for the sixth straight month. And the World Gold Council reported that physical-backed ETFs, led by those in China, saw the biggest inflows in three years.

Platinum sipped 0.4% for a weekly decline of 1.4%. Palladium dipped 0.3% but still gained 1% this week.

At the New York spot close: gold fell $38.70 to $3,182; silver shed 34 cents to $32.16; platinum dipped 3.60 to $988.55; and palladium slipped $2.75 to $953.75 an ounce.