Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 0.9% to close under $3,289 as the dollar ticked higher on improved consumer sentiment and softer inflation, undercutting alternative stores of value. Bullion fell 2.2% for the week and 0.5% for the month, pressured by risk appetite after the Trump administration temporarily suspended some of its most extreme tariffs. Silver fell 1.2% to close at $32.09, notching a monthly loss of 1.4%.

The personal consumption expenditures index, the Fed's preferred inflation gauge, rose 0.1% in April to post a 12-month increase of just 2.1%. Whlie the yearly inflation rate is barely above the Fed's target 2%, few analysts expect it to last as the most aggressive US tariff schemes in a century seep into the economy.

Consumer spending growth slowed to 0.2% last month on tariff concerns, but sentiment improved this month after 145% tariffs on China were cut back to 55%.

The dollar added 0.2% against major rivals, pressuring gold by making it more expensive in other currencies. And Treasury yields retreated to just above 4.4%, creating headwinds for gold by decreasing the opportunity cost for holding it instead of bonds to safety.

Platinum fell 1.7% but still gained 10% this month, lifted by sanctions against Russia. Palladium slid 0.6% for the session but rose 1.7% for the month.

At the New York spot close: gold slid $28.20 to $3,288.90; silver shed 39 cents to $32.09; platinum dropped $18 to $1,056.70; and palladium dipped $6 to $1,002 an ounce.