Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 1.3% to close near $1,962 as cooling US inflation and soft economic data hammered yields and the dollar, boosting alternative stores of value. It was the metal's highest finish in nearly a month.

The consumer price index rose a scant 0.2% in June, pulling the annual inflation rate down to 3%, the lowest since March 2021. The core rate, minus volatile food and energy costs, also rose 0.2% for the smallest increase in two years. The annual core rate dropped to 4.8% from 5.3% in May.

Separately, the Fed's Beige Book reported US economic activity slowed further in late May and early June. Out of the 12 Fed regions, five reported slight or modest growth, five were flat, and two reported modest declines.

Benchmark 10-year Treasury yield tumbled by the most in two months to around 3.8% as traders speculated that the Fed's rate-hike cycle will likely end after one more increase this month. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking lower with yields, the dollar shed 1.2% to sink to the lowest level in more than a year. A falling buck lifts gold and other commodities by making it less expensive in other currencies.

The other precious metals were also sharply higher, with silver jumping 4.4% while platinum and palladium climbed 2.6% each.

At the Comex close: August gold surged $24.60 to $1,961.70; September silver climbed $1.03 to $24.31; October platinum picked up $24.20 to $956.60; and September palladium advanced $31.90 to $1,279.80 an ounce.