Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold eased 0.5% to close just under $2,425.90 more cautionary comments from a Fed official lifted the dollar, prompting traders to take profits from two straight record-high sessions. Silver dropped 1% to finish at $31.97 an ounce.

Fed Governor Christopher Waller said today that the softer April CPI was a welcome relief, and inflation is on its way toward 2%. But several more months of good inflation data will be needed before he advocates for lower interest rates.

Waller joins several Fed other officials in tamping down market expectation for rate cuts, which have risen recently because of softer inflation data, weak retail sales, eroding consumer sentiment, and a cooling labor market.

The dollar added 0.1% against major rivals after Wallers vaguely hawkish comments, undercutting gold and other commodities by making them pricier in other currencies. Benchmark 10-year Treasury yields were sideways.

Gold has rallied to new record highs in recent sessions on safe-haven inflows because of global turmoil and expectations the Fed will cut rate twice this year, beginning in September. Unprecedented purchases by central banks and strong physical demand by retail investors in China are also undergirding the bull market.

Platinum and palladium edged down 0.3% and 0.1%, respectively.

At the New York spot close: gold eased $12.60 to $2,425.90; silver slid 34 cents to $31.87; platinum dipped $2.80 to $1,060.90; and palladium inched down $1.30 to $1,030.30 an ounce.