Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.5% to close just above $2,300 despite soft inflation and employment data as the dollar rallied on yesterdays hawkish Fed statement, pressuring alternative stores of value. Silver slid 0.5% to finish under $29 an ounce.

US wholesale prices fell 0.2% in May, knocking the 12-month rate down to 2.2%, according to the produce-price index. It was the second drop in three months. Core prices, minus food and energy, were flat in May for the first time in a year, with the 12-month rate holding steady at 3.2%.

Following yesterdays CPI print showing consumer prices unchanged last month, the falling PPI is another sign that inflation is easing. Wholesale prices typically presage future consumer inflation trends.

Separately, first-time jobless claims jumped 13,000 to 242,000 last week, the highest level since last August.

Benchmark 10-year Treasury yields rolled back to 4.25% on the disinflationary data. But the dollar rallied 0.5% after yesterdays policy statement from the Fed signaled the likelihood of just one rate cut in 2024. A rising buck weighs on gold and other commodities by making them pricier overseas.

In his post-meeting presser, Fed Chair Powell blunted the hawkish forecast, saying it was open to revision if inflation continues to soften in coming months.

Platinum and palladium dropped 1.7% and 2.5%, respectively.,

At the New York spot close: gold fell $35.80 to $2,300.20; silver slid 14 cents to $28.99; platinum dropped $16.40 to $954.60; and palladium shed $22.40 to $877.40 an ounce.