AGE Daily Gold Update

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

4/11/2024: Gold jumps on soft wholesale prices

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold jumped 1.1% to close at a new all-time high of $2,354.80 after soft PPI data reduced inflation worries and rekindled expectations that the Fed may be back on track for rate cuts in Q3. The gold price has now risen in 14 over the last 16 sessions, adding nearly 11%. Silver gained 0.7% to close at $28.25 an ounce.

The producer price index rose a modest 0.2% in March, less than forecast, although the 12-month rate rose to 2.1% from an extremely low 1.6% in February. Wholesale prices typically anticipate consumer prices, helping to reduce worries about resurgent inflation after yesterday's hotter-than-expected CPI.

While a June rate cut continues to be unlikely, Fed fund futures traders increased their bets on a quarter-point rate cut in July to 50/50. The Fed's meeting in September is now considered most likely, with the probability increasing to 71% from under 65% yesterday.

Benchmark 10-year Treasury yields and the dollar both edged down slightly after the PPI print.

Gold's historic rally remains supported by near-record levels of buying by global central banks to diversify away from G7 currency risk. Safe-haven demand because of geopolitical turmoil in Ukraine and the Middle East are also fueling rebounds whenever the price weakens slightly.

Platinum rose 1% while palladium fell 1.7%.

At the New York spot close: gold gained $25.20 to $2,354.80; silver rose 20 cents to $28.25; platinum picked up $10 to $978.50; and palladium dropped $17.70 to $1,040.70 an ounce.