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AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


6/2/2021: Gold gains on inflation, falling yields

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.3% to close just under $1,910 as inflationary pressures reported in the Fed's Beige Book combined with lower Treasury yields to boost demand for alternative assets. It was the metal's highest finish since the first week in January.

The US economy expanded at a "moderate pace" in April and May, according to the anecdotal evidence compiled in the Fed's most recent Beige Book. Growth was attributed to sharply higher consumer spending and increased factory activity despite pandemic-related supply and labor shortages.

Notably, higher inflation was reported in both raw materials and consumer prices across all 12 Fed regions.

Wall Street waffled in response, vacillating between minor gains and losses in all three major indexes. While the accelerating recovery spurred some risk appetite, hiring struggles and higher prices pushed some investors toward safer plays.

Overall, trading was muted across the market as investors await the government's monthly nonfarm payrolls report, due Friday, for additional clues on the direction of monetary policy.

Benchmark 10-year Treasury yields retreated under 1.6%, making gold more attractive by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Capping gold's gains, the dollar inched up 0.1% against major rivals. A stronger dollar makes gold and other commodities pricier in other currencies, limiting overseas demand.

The other precious metals were mostly higher, with silver and palladium adding 0.4% and 0.2% respectively, while platinum slipped 0.6%.

At the Comex close: August gold gained $4.90 to $1,909.90; July silver climbed a dime to $28.20; July platinum fell $7 to $1,192.70; and September palladium picked up $5.40 to end at $2,868.60 an ounce.

  

Metal Ask      Change
Gold $2,235.81           Price Change Down Arrow $-2.68
Silver $25.08           Price Change Down Arrow $-0.06
Platinum $918.61           Price Change Down Arrow $-0.56
Palladium $1,051.50           Price Change Up Arrow $0.26
In US Dollars