Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold climbed 0.3% to close above $1,937 as softer inflation expectations pressured yields and the dollar, lifting alternative stores of a value. It was the metal's highest finish in three weeks.

A New York Fed's survey showed US inflation expectations fell to the lowest level in two years in June. Consumers see inflation at 3.8% one year from now, down from 4.1% in May. They also reported improved outlooks for personal finances and ability to borrow money.

Supporting the softer inflation outlook, used car prices fell an annualized 10.3% in June, notching their tenth straight month of annual declines. Sky high car prices have been a driving force behind inflation since the start of the pandemic.

Tomorrow's release of the consumer price index for June will give a better indication of inflation's course.

Benchmark 10-year Treasury yields slipped back under 4% as the weaker inflation outlook combined with last Friday's anemic job-growth data to cause traders to speculate that the Fed is near the end of its rate-hike cycle. Lower yields lift gold by reducing the opportunity cost for holding it instead of bonds.

The dollar tracked lower with yields, losing 0.3% against major rivals to hit a two-month low. A weaker dollar often supports gold and other commodities by making them cheap in other currencies, boosting overseas demand.

Sharply higher oil also helped gold. US benchmark WTI crude rallied 2.5% to nearly $75 per barrel on recent supply cuts by OPEC+ producers. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed. Silver and platinum slid 0.3% each while palladium rose nearly 1%.

At the Comex close: August gold gained $6.10 to $1,937.10; September silver slipped 6 cents to $23.28; October platinum dipped $2.40 to $932.40; and September palladium picked up $11.20 to $1,247.90 an ounce.