Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGOLD RISES AS Q1 GDP FALLS May 30, 2024 – New York spot gold rose slightly to close just under $2,342.90 after lower Q1 GDP and higher jobless claims pressured Treasury yields, boosting alternative stores of value. Silver slid more than 2% to finish at $31.39 an ounce.

The US economy grew more slowly in the first quarter than previously reported, with GDP revised down to a meager 1.3%. Softer consumer spending created the drag, something economists say could be a harbinger of further slowing. Household spending accounts for around 70% of GDP.

Separately, first-time jobless claims rose by 3,000 to 219,000 last week, more than expected.

Benchmark 10-year Treasury yields pulled back under 4.6% as traders speculated that slower growth may induce the Fed to cut interest rates this fall. Lower yields boost gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Adding to dovish sentiment, New York Fed president John Williams said today that he expects inflation to resume moderating in the second half of this year. Williams is a key ally of Fed Chair Jerome Powell.

The dollar was virtually flat. Platinum and palladium dropped 1% and 2%, respectively.

At the New York spot close: gold added $1 to $2,342.90; silver slid 89 cents to $31.39; platinum lost $9.90 to $1,038; and palladium shed $19.70 to $944.30 an ounce.