Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's 1.4% rally, gold added another 0.3% after hawkish policy signals from European central banks triggered a sharp selloff in the dollar, lifting alternative stores of value.

ECB President Christine Lagarde said today that the bank will raise interest rates by the end of September and may hike further if inflation stabilizes around 2%. With the eurozone reeling from the pandemic and Ukraine war, the ECB is among the last major central banks to join the march toward tighter money.

Separately, a governor of the Swiss National Bank said the bank will begin also tightening soon if inflation remains persistently high.

The dollar plunged more than 1% on the prospect of its major rivals lifting rates and thereby making themselves relatively more attractive to Forex investors seeking higher yield. The buck rose to 20-year highs recently because of the expected rate differential as the US tightened while other did not. Gold and other commodities become less expensive overseas when the dollar weakens.

The other precious metals were also higher, with silver adding 0.2% while platinum and palladium picked up 1% and 1.4%, respectively.

At the Comex close: June gold gained $5.70 to $1,847.80; July silver added a nickel, $21.72; July platinum climbed $9.20 to $950.30; and June palladium picked up $27 to $1,966.70 an ounce.