Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close near $1,778 after weaker-than-expected inflation and consumer data eased concerns that the Fed may tighten monetary policy sooner than planned. The metal ended the week 0.5% higher for its first weekly rise in a month.

The Fed's preferred inflation gauge, the so-called PCE prices index, climbed 0.4% in May to post a 12-month rate of 3.4%, the most since 2008. While quite high, the reading was less than forecast and suggested that worries about runaway inflation may be overblown.

The dollar fell nearly 0.3% after the PCE print on speculation that the Fed be less inclined to raise interest rates ahead of schedule. A weaker dollar lifts gold and other commodities by making them cheaper overseas.

Also pressuring the dollar while supporting gold, consumer spending and sentiment data were weaker than forecast. Spending was flat in May as Federal stimulus money dried up, reducing incomes. And consumer sentiment, while still optimistic in June among wealthier Americans, fell from its earlier reading on worries that rising prices will erode standards of living.

The other precious metals were mixed for the day and higher for the week. Silver added 0.1% for a weekly rise of 0.5%. Platinum rose 0.9% today and 6% this week. Palladium slid 0.3% but still gained 6.8% for the week.

At the Comex close: August gold gained $1.10 to $1,777.80; July silver added 4 cents, to $26.09; July platinum climbed $9.70 to $1,103.60; and September palladium lost $6.70 to $2,637.20 an ounce.