Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinNew York gold was little changed today, gaining 0.16%, and trading in a tight $15 range following the release of the highly anticipated PCE inflation data, the Fed s preferred measure of inflation. Both core and headline inflation eased slightly from last month and in line with analysts expectations. Core inflation (excluding food and energy) dipped from 2.8% YoY to 2.6%, while headline PCE eased from 2.7% to 2.6%. The dollar and treasury yields were mixed with the dollar easing 0.07% and 10-year T-bill yields gaining 0.06 basis points.

With inflation slowly easing and bond yields trailing inflation lower, traders are increasingly gaming the Fed may still cut interest rates this year. According to the CME FedWatch tool, the chances of September interest rate cut increased from 64% to 68% following the PCE release this morning.

Silver gained 1% from yesterday s New York close; platinum gained 1%, and palladium surged 5.4%.

At the New York spot close: gold gained $3.20 to $2,327.70; silver gained 31 cents, to $29.23; platinum rose $10.20 to $1,001.90; and palladium surged $50.40 to $977.90 an ounce.