AGE Daily Gold Update

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

6/12/2025: Gold surges on flights to safety

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold surged 1.8% to close near $3,381, a one-week high, as trade uncertainty and geopolitical tensions combined with cooler US data to boost safe-haven inflows. Silver added 0.1% to finish at $36.21 an ounce.

Producer prices rose 0.1% in May, less than most forecasts, easing concerns that the worst trade wars since the 1930s are fueling inflation in the wholesale pipeline. The benign data comes one day after consumer prices posted a similarly mild rise of just 0.2% last month.

Separately, new jobless claims held at an eight-month high of 248,000 last week, suggesting the labor market is beginning to show signs of stress.

The cooling data raised speculation that the Fed may begin cutting interest rates sooner than expected. Falling rates lift gold by pressuring the dollar and Treasury yields, making bullion cheaper overseas and lowering the opportunity cost for holding it instead of bonds here at home.

Benchmark 10-year Treasury yields receded toward 4.3% as investors sought the perceived safety of US government debt. The dollar dropped 0.7% against major rivals led by traditional safe-haven currencies like the yen and Swiss franc.

The soft data come against a backdrop of rising trade concerns and geopolitical tension.

While President Trump announced that recent negotiations with China produced a "done deal," China says merely a framework was agreed upon and no agreement has been finalized.

In addition, Trump said today he will send out letters to countries about the approaching tariff deadline, and he plans to raise tariffs even higher on auto import, despite objections from major US automakers.

Meanwhile, tensions with Iran are ramping up to the point where the President withdrew US troops from the region, saying cryptically that it could get dangerous.

Platinum rallied 2.6% while palladium slipped 0.6%.

At the New York spot close: gold gained $59.60 to $3,380.90; silver added a nickel, to $36.21; platinum picked up $32.30 to $1,290.40; and palladium slid $6.30 to $1,064.40 an ounce.