Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold dipped 0.6% to close under $3,330 after rising consumer prices shifted rate-cut expectations, lifting Treasury yields and the dollar. Silver lost 1.6% to finish at $37.83 an ounce.

The consumer price index rose 0.3% in June, the most in five months, to push the annual inflation rate up to 2.7% from 2.4% in May. The bulk of the increase came from services, not goods, indicating tariffs have not played much of a part so far.

Tomorrow's release of the producer price index showing wholesale inflation should give a better sense of inflation in the product pipeline.

Fed fund futures traders shifted rate-cut projections slightly after the data, putting the likelihood of a quarter-point reduction in September at 52%, down from 59% yesterday.

Benchmark 10-year Treasury yields climbed to 4.5%, pressuring gold by increasing the opportunity costs for holding it instead of bonds for safety.

Tracking higher with yields, the dollar added 0.6% against major rivals. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

Platinum slid 1.6% while palladium picked up 0.4%.

At the New York spot close: gold dropped $21.70 to $3,329.80; silver slid 63 cents to $37.83; platinum dropped $23 o $1,376.70; and palladium picked up $5 to %1,207.20 an ounce.