Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat, edging up less than 0.1% to finish just above $1,999 after mixed US inflation data lowered yields but lifted the dollar, leaving demand for alternative assets little changed. The metal gained 0.4% for the week and 0.7% for the month.

The Fed's preferred inflation gauge, the Personal Consumption Expenditures index, rose by a scant 0.1% in April as higher interest rates have cooled the US economy. The yearly rate declined substantially to 4.2% from 5.1% in March.

But the inflation news was not all good. The so-called core PCE, excluding volatile food and energy costs, rose by a sharper 0.3% for the month and edged down only 0.1% to 4.6%. And a separate report showed labor costs remained sticky in the Q1, rising 1.2% after two quarters of 1.1% increases.

Benchmark 10-year treasury yields retreated slightly on the positive headline PCE, giving gold a boost by decreasing the opportunity costs for holding it instead of bonds as a safe-haven asset.

Downbeat consumer sentiment data also helped buoy flights to safety after the final University of Michigan index was unchanged at a historically low reading in April.

Still, Fed funds futures traders raised their bets to a 90% likelihood that the central bank will hike interest rates by a quarter-point when it meets next week to hammer out monetary policy.

The dollar edged slightly higher against major rivals on the hawkish rate view, capping gold's gains by making it pricier in other currencies.

The other precious metals were mixed for the day and higher for the month. Silver added 0.1% for a monthly gain of 4.4%. Platinum fell 0.3% for the day but picked up 8.7% in April. Palladium rose 1.2% today and 2.9% this month.

At the Comex close: June gold rose 10 cents to $1,999.10; July silver added 2 cents, to $25.23; July platinum increased by $3.10 to $1,090.10; and June palladium climbed $17.50 to $1,509.90 an ounce.