Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold dipped 0.3% to close under $2,455 despite downticks in Treasury yields and the dollar as traders took profits from yesterdays all-time high close above $2,462. Silver fell 3.5% to finish at $30.14.

Two more Fed officials signaled that their growing comfort with the idea of cutting interest rates this fall. Fed governor Christopher Waller said the central bank is getting closer to lowering interest rates after three straight months of cooling inflation. New York Fed President John Williams echoed that sentiment but added that a rate cut in July in unlikely.

Reinforcing rate-cut expectations, the Feds Beige Book reported slight to moderate activity overall for the US economy, with five of 12 districts registering no increase or a downturn. Firms are expecting slower growth going forward with softening labor conditions.

Fed fund futures project the odds of a September rate cut at 98%, down from nearly 100% yesterday, according to CME FedWatch.

Benchmark 10-year Treasury yields continued to slide on the rate view, supporting gold by decreasing the opportunity cost for holding it instead of bonds for safety.

The dollar dropped 0.5% against major rivals led by the yen, which rallied on speculation that the BOJ is intervening to prop it up.

Platinum and palladium each slid 0.3%.

At the New York spot close; gold dipped $7.60 to $2,454.80; silver shed $1.06 to $30.14; platinum edged down $3.10 to $1,000.60; and palladium retreated $2.60 to $954.20 an ounce.