Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinNew York spot gold tumbled 1.6% to close the trading session just over $2,836. Silver fell 0.5% to $31.22 an ounce. Profit taking, which began in earnest yesterday, continued today with gold down to a three-week low and silver a four-week low.

The precious metals sell-off started overnight in Asian trading and continued through the European session into New York this morning. Asian equity markets tumbled 2% to 3% overnight due to concerns over how US tariffs might affect Asian economies going forward.

At one point early this morning Bitcoin was down as low $78,410, with crypto and precious metals succumbing to the liquidity event the Asian sell-off sparked. As the New York session entered midday, however, Bitcoin regained all it�s losses plus about $1,175 to $84,565 as buyers bought the dip. Gold regained $13 in the electronic session following the NY close to $2,849, but silver shed 12 additional cents to $31.12.

The anticipated Fed�s preferred inflation gauge, the Personal Consumption Expenditures or PCE inflation report, for January was released this morning indicating increases of 0.3% MoM and 2.5% YoY for the headline index, while the core index which excludes food and energy rose 0.3% MoM and 2.6% YoY. The figures were in line with analyst�s expectations and indicated inflation cooled modestly since December.

Meanwhile consumer spending contracted -0.5% in January, a full 1% decrease from Decembers 0.5% MoM increase. Auto sales fell sharply MoM contributing to the decline. Extreme cold weather and a slowdown in services were cited as reasons for the decline.

Consumer spending, the engine of US economic growth, was positive for 11 of 12 months in 2024, and the last negative consumer spending print was in Dec. 2024 at -0.3%.

The US dollar index at 107.22 and the US 10-year treasury yield 4.24% were virtually unchanged today.

New York spot gold tumbled $46.47 to $2,836.80; silver fell 17 cents to $31.22; platinum fell $14.65 to $940.10; and palladium tumbled $25.00 to $899.70 an ounce.