Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 1% to close above $2,355 as the dollar dipped and oil rose ahead of this weeks important release of PCE data on inflation. Silver surged 5.4% to finish at $31.97 an ounce.

Bargain-hunters swept into the market, buoying gold after last weeks 2.3% decline, its worst week in six months. Hawkish undertones in the Feds May minutes, released last Wednesday, had given traders an occasion for profit-taking from the metals record rally to new all-time highs.

But bullish sentiment appears to be returning. The release of the Personal Consumption Expenditures index on Friday should give further clarity to the course of interest rates. According to a survey of Wall Street economists, the core PCE is forecast at 0.2% for April, the lowest reading since December, which should ease the Feds worries about inflation risk.

Also helping sentiment, the dollar slid 0.3% against major rivals ahead of the key inflation print, boosting gold and other commodities by making them less expensive in other currencies.

WTI crude jumped 2.7% on expectations that OPEC+ will extend production curbs at its meeting next week. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Platinum and palladium picked up 2.7% and 0.8%, respectively.

At the New York spot close: gold gained $22.70 to $2,355.20; silver surged $1.64 to $31.97; platinum added $28.20 to $1,066.80; and palladium advanced $7.60 to $977.60 an ounce.