Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.2% to close above $2,360 despite upticks in Treasury yields and the dollar as bargain-hunters lifted demand ahead of this weeks CPI release. Silver added 0.3% to finish at $30.72 an ounce.

Benchmark 10-year Treasury yields edged up for the first time in five sessions after Fed Chair Jerome Powell, testifying before the Senate banking committee, refused to commit to the timing of rate cuts. Tracking with yields, the dollar added 0.1% against major rivals.

Emphasizing that he was not sending any signals about the timing of any future actions, Powell acknowledged that the US economy is no longer overheated and the job market is fully back in balance after pandemic-related turmoil. He added that more data would strengthen the case for rate cuts.

While rising yields and a stronger dollar typically weigh on gold demand, traders looked ahead to Thursdays release of the June consumer price index. Annualized inflation is expected to fall to 3.1% from 3.3% in May, perhaps giving Powell the confidence he needs to begin loosening monetary policy.

Fed fund futures to see a 76% chance of a rate cut in September, with a second one likely in December.

Platinum and palladium dropped 1.6% and 2.8%, respectively.

At the New York spot close: gold gained $4.90 to $2,360.10; silver added 10 cents, to $30.72; platinum shed $16.50 to $992.20; and palladium retreated $28.50 to $986.20 an ounce.