Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close above $1,864 after the annual cost of living dropped somewhat in January, pressuring the dollar and lifting alternative stores of value.

The Consumer Price index increase by 0.5% last month, the most in three months, behind higher rent and gasoline costs. But the annual rate of inflation slipped from 6.5% to 6.4%, the lowest level in 15 months. Meanwhile, the core inflation, excluding food and energy, rose 0.4% for a 12-month rate of 5.6%, down from 5.7% in December.

The dollar slipped 0.1% after the CPI print as traders were at once relieved that inflation wasn't even stronger but concerned that it might take longer to subside. A weaker dollar lifts gold and other commodities by making it less expensive on other currencies, boosting overseas demand.

Several Fed officials weighed in after the data with hawkish comments. Philadelphia Fed President Patrick Harker said inflation "is going to take some time to come down" and rates need to be raised above 5%. New York Federal Reserve President John Williams said getting inflation back down to 2% could take "a few years."

Benchmark 10-year Treasury yields ticked higher, capping gold's gains. Higher yields weigh on the metal by increasing the opportunity cost for holding it instead of bonds as a safe haven asset.

The other precious metals were mixed. Silver added 0.1% while platinum and palladium dropped 2.1% and 4.6%, respectively.

At the Comex close: April gold gained 1.90 to $1,865.40; March silver picked up 2 cents, to $21.87; April platinum dropped $20.20 to $939.20; and March palladium shed $70.30 to $1,466.20 an ounce.