Gold News & Info

Source:Dana Samuelson, American Gold Exchange

AustinNew York gold rebounded 1.01% to $2,324.24 from yesterday s dip to just under $2,300 following the third and final revision of Q1 GDP. While Q1 GPD increased 0.1% from 1.3% to 1.4%, personal consumption expenditures and services declined from the second estimate, indicating modestly lower consumer resilience in the US in Q1. Consumer spending comprises about 70% of the US economy.

Increases in government spending and exports from the second estimate helped to offset declines in personal consumption expenditures and business equipment spending to result in a net gain of 0.1% for the final Q1 GDP.

In a separate report, new orders for non-defense capital goods orders fell sharply, 0.6%, in May. Softer demand for goods and higher borrowing costs were cited as the reason for the unexpected MoM slowdown in business equipment spending from April s 0.3% gain. A slowdown in new orders suggests the US economy is losing momentum.

The dollar and treasury yields edged lower following the revised GDP release and the new orders report, helping to buoy gold and silver.

Tonight, we will get our first look at the upcoming presidential election rematch between President Biden and ex-President Trump as they take the stage in Atlanta for the first of only two scheduled presidential debates this year. Tomorrow morning the BEA will release the latest PCE inflation data which is crucial to the Fed s interest rate policy decision making. Analysts are anticipating a slight decline in PCE inflation from 2.7% last month to 2.6% for this month s release.

Surprises in either tonight s debate or tomorrows PCE report could result in market volatility tomorrow, which has been absent from most major markets for the last several trading sessions.

Silver was virtually unchanged from yesterday s New York close; platinum fell 3.1% while palladium rose 1.4%.

At the New York spot close: gold gained $24.76 to $2,323.96; silver gained 1 cent, to $28.91; platinum fell $31.70 to $991.70; and palladium lost $13 to $938.13 an ounce.