Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.2% to close near $2,335 as Treasury yields retreated after the PCE inflation gauge was in line with expectations and consumer sentiment softened. The metal still fell 2.7% for the week as worries about an escalation in the Israel-Iran conflict subsided. Silver slid 0.4% to $27.25 an ounce, posting a weekly loss of 5.5%.

The Personal Consumption Expenditures index rose 0.3% in March behind sharply higher housing and utilities costs, pushing the annual rate up to 2.7% from 2.6% in February. The core PCE, less food and energy, also rose 0.3% for an annual 2.8% rate, unchanged from the month before.

While inflation is proving to be stickier than the Fed hoped, the March PCE nonetheless came in softer than many feared, lending some relief to inflation-worried markets. Benchmark 10-year Treasury yields retreated under 4.7%, helping to lift gold by decreasing the opportunity cost for holding it instead of bonds.

Meanwhile, the University of Michigan said consumer sentiment weakened in April because of rising geopolitical tensions, weak equities, and high interest rates.

Capping gold's gains, the dollar rose 0.5% against major rivals, hitting a 34-year high against the yen when the BOJ held interest rates unchanged at its two-day meeting.

After closing at a record high near $2,400 last Friday, gold retreated this week on easing tensions between Israel and Iran. The two longtime belligerents, having exchanged largely symbolic drone attacks, are apparently letting the matter rest.

Platinum added 0.1% today but subtracted 2.2% this week. Palladium fell 2.4% for a weekly decline of 6.6%.

At the New York spot close: gold gained $5 to $2,334.80; silver shed a dime to $27.25; platinum picked up $1.10 to $914.70; and palladium shed $23.70 to $958.30 an ounce.