Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close above $1,851 as easing inflation and mixed US economic data pressured yields and the dollar, boosting alternative stores of value. The metal added 0.7% for the week for its second straight weekly rise.

The Fed's preferred gauge of inflation, the Personal Consumption Expenditure index, rose merely 0.2% in April, notching its smallest monthly increase since November 2020. The annualized PCE rate fell to 6.3%, down from 6.6% in March, marking the first monthly decrease in 18 months. Falling gasoline prices provided the most relief.

The dollar fell 0.2% and benchmark-10-year Treasury yields receded under 2.75% as traders speculated that the Fed will be less aggressive in raising rates as inflation starts to ebb.

A falling dollar lifts gold and other commodities by making them less costly in other currencies. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Americans spent freely in April, lifting consumer spending higher by 0.9%. While part of the increase was attributed to higher prices, most of it came from increasing numbers of people frequenting restaurants, traveling, and buying cars. Consumer spending accounts for roughly 70% of GDP.

The combination of easing inflation and solid underlying momentum in the economy triggered a wave of risk appetite. The Dow rose 1.8% while the S&P 500 jumped 2.5% and the Nasdaq 3.3%.

But the elevated cost of living continues to weigh on the outlook for consumers. The University of Michigan's sentiment index fell again to the lowest level in more than a decade, with respondents citing inflation as the biggest worry.

The other precious metals were higher for the day and mixed for the week. Silver rose 0.7% for a weekly gain of 1.5%. Platinum added 0.6% today but slipped 0.6% this week. Palladium climbed 2.9% for the session and 5% for the week.

At the Comex close: June gold gained $3.70 to $1,851.30; July silver added a nickel, to $22.10; July platinum picked up $9.20 to $943; and September palladium climbed $58.10 to $2,054.80 an ounce.