Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.9% to close near $2,039 and Treasury yields pulled back despite hawkish comments from Fed officials as escalating turmoil in the Middle East drove safe-haven inflows. The metal ended the week with a gain of 1.3%.

More Fed officials added their voices to the stale refrain that more evidence of falling inflation before is needed before cutting interest rates. Fed governors Lisa Cook and Christopher Waller separately voiced confidence that inflation will continue to fall this year but emphasized there is “no rush” to begin easing monetary policy.

Similarly, New York Fed chief John Williams, an influential ally of Chairman Jerome Powell, said the central bank is “on track” for rate cuts “later this year,” but would give no indication of the timing.

Goldman Sachs shifted its forecast for the initial rate cut from May to June this week, and Fed fund futures put the odds at nearly 70%, roughly the same as last week.

Benchmark 10-year Treasury yield slipped back near 4.25% despite the hawkish Fed talk as the markets have already priced in June as the new start date for rate cuts. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds.

The dollar was flat for the day but lost 0.3% this week for its first weekly loss of the year. The shifting rate view has lifted the buck in recent months but that boost is beginning to subside.

As its 1.3% climb this week indicates, gold prices are holding up remarkably well in the face of higher yields and dollar strength as concerns mount about the conflict in the Middle East escalate. The metal should continue to receive support from global unrest.

The other precious metals were higher for the session and mixed for the week. Silver rose 0.9% today but fell 2.1% this week. Platinum added 0.5% to cut its weekly loss to 0.4%, Palladium advanced 1.9% for a weekly rise of 3.7%.

At the New York spot close: gold gained $18.90 to $2,038.60; silver rose 20 cents to $22.98; platinum added $4.10, to $909.60; and palladium picked up $18.30 to $988.50 an ounce.