Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold was nearly flat, inching down less than 0.1% to hold above $2,322 despite upticks in Treasury yields and the dollar as traders tread water ahead of further clues about the direction on interest rates. Silver added 0.2% to finish at $27.36.

Boston Fed President Susan Collins said today that she was "not surprised" by the recent stickiness of inflation but expects interest rates at current levels will be enough to bring it back toward the Fed's target 2%.

Collins's stance aligns with Tom Barkin of the Richmond Fed and John Williams of the New York Fed President, who indicated on Monday that rate cuts, not hikes, would be the Fed's next move. Her comments contrasted with those of Minneapolis Fed President Neel Kashkari, who said yesterday that another rate hike was possible.

Benchmark 10-year Treasury yields moved slightly higher but remained under 4.5% on Kashkari's mildly hawkish rate view. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar also edged up on expectations that the US economy will outperform the Eurozone in the coming months.

Fed fund futures traders still expect the Fed to cut rates twice this year by 25 basis points each. Last week's weak payrolls data showing just 175,000 new jobs added in April helped to lift expectations from a single rate cut in 2024.

Now traders await the University of Michigan's consumer sentiment report on Friday and the April CPI reading next Wednesday for additional clues on the course of rate policy.

Platinum and palladium fell 0.4% and 2.4%, respectively.

At the New York spot close: gold dipped $1.90 to $2,322.30; silver added 6 cents, to $27.36; platinum slipped $3.80 to $984.60; and palladium shed $23.40 to $956.30 an ounce.