Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat, edging down a dollar to close at $2,033 as the dollar ticked up ahead of tomorrow’s release of key inflation data that could influence the timing of rate cuts.

The Personal Consumption Expenditures index, the Fed’s favorite inflation gauge, is expected to show that headline prices rose 0.3% in January for an annual increase of 2.4%. The so-called core PCE, factoring out food and energy costs, is forecast to rise 2.4% for January and 2.8% for the year.

Hotter than expected CPI and PPI prints have put markets on edge for a higher-than-forecast PCE. If the print exceeds expectations, the odds of a Fed rate cut in June are likely to drop, whereas softer print could accelerate the Fed’s timing.

Benchmark 10-year Treasury yields slipped under 2.3% after the first revision to Q4 GDP showed the economy expanded slightly less than initially reported, posting a 3.2% annual growth rate rather than 3.3%. Sustained slower growth could tilt the odds in favor of an earlier Fed rate cut.

The US trade deficit in goods widened to 2.6% in January, the Commerce Department reported in an advance release. Rising trade deficits undermine GDP.

The US dollar picked up 0.2% against major rivals, pressuring gold by making it pricier in other currencies. Helping to lift the buck, the Australian dollar fell after inflation came in at a two-year low, and the New Zealand dollar eroded a rate cut from its central bank.

The other precious metals were also lower, with silver slipping 0.55 while platinum and palladium lost 1.3% and 2.6%, respectively.

At the New York spot close: gold inched down $1 to $2,033; silver slid 12 cents to $22.41; platinum shed $11.90 to $885.10; and palladium plunder $24.30 to $918 an ounce.