Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.3% to close near $2,037 on profit-taking after consumer inflation fell to 4.9% but gave no further clarity on the Fed's path for interest rates. It was the metal's first decline in three sessions.

The Consumer Price Index rose 0.4% in April, as forecast, after increasing 0.1% in March. But the annual inflation rate fell to 4.9%, the first time under 5% since April 2021. The core rate minus food and energy also rose 0.4% for an annualized rate of 5.5%.

Investors hoping for definitive direction on interest rates were somewhat disappointed. While headline inflation is coming down, core prices remain stickier than the Fed would like, leading some to worry that the central bank will keep rates elevated for longer.

Still, Fed fund futures trading puts the odds of a Fed pause in June at 94%, up from 78% yesterday. The likelihood of a rate cut in July rose from 29% yesterday to 42% after the CPI print.

Benchmark 10-year Treasury yields retreated under 3.5% while the dollar slipped 0.2%, limiting gold's slide.

The other precious metals were mixed, with silver slipping 0.9% while platinum and palladium rose 0.3% and 1.6%, respectively.

At the Comex close: June gold dipped $5.80 to $2,037.10; July silver slipped 24 cents to $25.66; July platinum added $3.10, to $1,119.10; and June palladium picked up $25.40 to $1,605.10 an ounce.