Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 1.2% to close near $3,221 after weak US economic data and a soft PPI pressured the dollar, boosting alternative stores of value. Silver added 0.8% to finish at 32.50 an ounce.

Wholesale inflation fell 0.5% in April, the biggest drop in the PPI since 2020, signaling inflationary pressures have yet to return. While the decrease is likely a one-off driven by falling egg and gasoline prices, it gives the Fed more room to consider rate cuts to offset the anticipated drag on GDP from aggressive new trade policies.

But retail sales, if not wholesale prices, are beginning to register the effects of tariffs. Sales grew at just 0.1% last month after 1.7% the month before, as consumers pull back on rising economic uncertainty.

Industrial output also stalled in April, with manufacturing falling 0.4% and motor-vehicle and parts output tumbling 1.9%.

Benchmark 10-year Treasury yields retreated on the downbeat data, boosting gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar dropped 0.3% against major rivals, lifting gold and other commodities by making them less expensive in other currencies.

Platinum and palladium climbed 1.2% and 0.6%, respectively.

At the New York spot close: gold gained $39.30 to $3,220.7-0; silver rose 27 cents to $32.50; platinum picked up $11.35 to $992.15; and palladium added $6.20, to $966.70 an ounce.