Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 0.8% to close under $2,300 as the dollar surged and Treasury yields edged higher rose ahead of tomorrows crucial PCE inflation data. Silver added 0.2% to $28.90 an ounce.

The dollar surged 0.4% to an eight-week high against a basket of major competitors while reaching the highest level against the yen since December 1986. The Feds so-slow policy on rate cuts relative to the ECB is boosting the buck, while the Bank of Japans ultra-low interest rate policy is weighing heavily on the yen in Forex trade.

Meanwhile, benchmark 10-year Treasury yields pushed up to 4.3% as traders positioned themselves ahead of the personal consumption expenditures data due tomorrow. The Feds preferred inflation gauge, the PCE print could determine whether the Fed is on track for a rate cut in September.

A rising dollar pressures gold and other commodities by making them more expensive in other currencies, limiting overseas demand. Higher yields further weigh on the metal by increasing the opportunity cost for holding it instead of bonds as a safe0haven asset.

Platinum rose 3.8% while palladium fell 1.2%.

At the New York spot close: gold shed $17.40 to $2,299.20; silver added 6 cents, to $28.90; platinum picked up $37 to $1,023.40; and palladium lost $11 to $925.20 an ounce.