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


5/26/2022: Gold edges up on data, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged up 0.1% to close near $1,848 after data showing contraction in the US economy prompted traders to lower their expectations for aggressive rate hikes, pressuring the dollar and lifting alternative stores of value.

The government reported that US GDP fell by an annualized 1.5% in the first quarter, more than previously estimated, and corporate profits fell for the first time in five quarters. The economy continues to expand overall, the data show, but at a significantly slower pace.

Separately, US pending home sales fell nearly 4% in April, signaling continued cooling the crucial housing market. It was the sixth straight month of declines.

The news reinforced the Fed's message in the May minutes, released yesterday, that monetary tightening must now proceed with caution. After months of hawkish forward guidance, many Fed officials softened their approach and suggested the need for flexibility in policy, given the economic headwinds caused by the continuing pandemic and Russia's war on Ukraine.

Wall Street rallied strongly on the softened outlook, with the Dow rising 1.6% while the S&P 500 climbed 2% and the Nasdaq 2.7%. The 2-year Treasury yield, most often correlated with near-term Fed policy, pulled back while the 10-year yield remained virtually unchanged.

The dollar lost 0.2% against major rivals on the prospect of slower rate hikes, lifting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

The other precious metals were also higher, with silver rising 0.5% while platinum and palladium climbed 0.8% and 0.2%, respectively.

At the Comex close: June gold added $1.30, to $1,847.60; July silver gained a dime to $21.97; July platinum rose $8.10 to $937.40; June palladium picked up $4.20 to $1,993.50 an ounce.


5/25/2022: Gold falls on profit-taking, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1% to close under $1,847 on profit-taking as equities and the dollar rebounded ahead of the release of the minutes from the Fed's May meeting. The metal had risen nearly 3% over the previous four sessions on safe-haven bids driven by a weaker dollar and recession worries.

As expected, the Fed signaled its intention to raise interest rates by 50 basis points at the next "several meetings" while decreasing its $9 trillion balance sheet. The central bankers remained focused on tightening the ultra-loose financial conditions that have led to consumer inflation above 8%, the highest in 40 years.

Yet they also signaled flexibility on the course of policy and showed little interest in larger rate hikes of 75 basis point or more. Entering the May meeting, several regional presidents had called for even more aggressive tightening. The minutes appeared to push back somewhat on that hawkishness, acknowledging the changing economic conditions triggered by the Ukraine war and ongoing pandemic.

Atlanta Fed President Earl Bostic voiced this softer approach this week, urging the Fed to "proceed carefully" to prevent the "significant economic dislocation" that may come from aggressive rate hikes.

Wall Street cheered the gentler tone, with the Dow adding 1% and the S&P 500 1.3% while the Nasdaq jumped 2%. Gold recouped around 0.3% after the minutes, pushing back above $1,853 in electronic trade.

The dollar also rebounded on bargain-hunting, adding 0.4% after hitting a one-month low the session before. A rising dollar pressures gold and other commodities by making them more expensive overseas.

The other precious metals were mostly lower, with silver and platinum sliding 1% and 1.3%, respectively, while palladium edged up 0.1%.

At the Comex close: June gold dropped $19.10 to $1,846.30; July silver lost 19 cents to $21.87; July platinum futures dropped $13.60 to $929.30; and June palladium futures added $2.70, to $1,989.30 an ounce.


5/24/2022: Gold climbs 1% on slowing growth

Source: Bill Musgrave, American Gold Exchange

Austin — Gold climbed 1% to close at a two-week high above $1,865 as slowing US growth pressured equities and the dollar, lifting alternative stores of value. It was the metal's fourth straight day of gains.

US economic activity grew in May at the slowest pace in several months, hampered by rampant inflation, supply shortages, and weakening consumer demand. The S&P flash services index and the separate manufacturing index both fell to three-month lows, with new orders rising at the slowest rate in 21 months.

The previously hot housing market also slowed further, with new homes sales plunging to the lowest levels since the pandemic in April. It was the fourth straight month of decline

Atlanta Fed President Earl Bostic sounded a note of alarm about the Fed's aggressive tightening of monetary policy into a slowing economy. "Uncertainties shroud the economic outlook on virtually every front," Bostic warned in an essay, and the central bank should "proceed carefully in tightening policy.”

US equity markets retreated after the dour data, with the Dow edging down 0.2% while the S&P 500 and Nasdaq shed 1.1% and 2.7%, respectively.

Benchmark 10-year Treasury yields pulled back under 2.8% as investors shifted into the perceived safety of government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked lower with yields, losing another 0.3% against major rivals on dimming outlook for US growth. The prospect of higher interest rates in the eurozone also weighed on the buck by lifting the euro after ECB President Christine Lagarde projected at lest one hike by August with more likely thereafter.

A weaker dollar supports gold and other commodities priced in it for global trade by making them cheaper in other currencies, boosting overseas demand.

The other precious metals were mostly higher, with silver and palladium jumping 1.6% and 1.4%, respectively, while platinum slid 0.8%.

At the Comex close: June gold climbed $17.60 to $1,865.40; July silver rose 34 cents to $22.06; July platinum dropped $7.40 to $942.90; and June palladium picked up $19.90 to $1,986.60 an ounce.


5/23/2022: Gold rallies on dollar weakness

Source: Bill Musgrave, American Gold Exchange

Austin — Extending last week's 1.4% rally, gold added another 0.3% after hawkish policy signals from European central banks triggered a sharp selloff in the dollar, lifting alternative stores of value.

ECB President Christine Lagarde said today that the bank will raise interest rates by the end of September and may hike further if inflation stabilizes around 2%. With the eurozone reeling from the pandemic and Ukraine war, the ECB is among the last major central banks to join the march toward tighter money.

Separately, a governor of the Swiss National Bank said the bank will begin also tightening soon if inflation remains persistently high.

The dollar plunged more than 1% on the prospect of its major rivals lifting rates and thereby making themselves relatively more attractive to Forex investors seeking higher yield. The buck rose to 20-year highs recently because of the expected rate differential as the US tightened while other did not. Gold and other commodities become less expensive overseas when the dollar weakens.

The other precious metals were also higher, with silver adding 0.2% while platinum and palladium picked up 1% and 1.4%, respectively.

At the Comex close: June gold gained $5.70 to $1,847.80; July silver added a nickel, $21.72; July platinum climbed $9.20 to $950.30; and June palladium picked up $27 to $1,966.70 an ounce.


5/20/2022: Gold score 1.4% weekly win

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged up by less than 0.1% to close above $1,842 as safe-haven inflows from falling equities overcame a mild rebound in the dollar. The metal finished the week 1.4% higher for its first weekly win in a month. Silver dropped 1.1% today but still rallied 3.3% this week.

All three main US equity indexes dropped as investors shed risk in the face of a slowing economy, high inflation, and the prospect of sharply higher interest rates. The Dow and S&P 500 lost around 0.3% while the Nasdaq fell 0.6%.

Recent hawkishness from the Fed has put markets on edge. Chair Powell admitted this week that "there could be some pain" for Americans as the Fed scrambles to contain inflation by jacking up the cost of money. Several officials signaled that a 75-basis rate hike is back on the table only two weeks after Powell said it is not being actively considered.

Benchmark 10-year Treasury yields retreated for a third day, pulling back under 2.8% as investors flocked toward the safety of government debt. Falling yields support gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Gold's gains were capped by a rebounding dollar, which bounced 0.3% higher against major rivals on bargain-hunting. The buck fell 1.4% this week, lifting gold by making it less expensive in other currencies.

Platinum and palladium fell 1.3% and 2%, respectively.

At the Comex close: June delivery added 90 cents, to $1,842.10; July silver lost 23 cents to $21.67; July platinum slid $12.60 to $941.10; and June palladium shed $38.70 to $1,939.70 an ounce.


5/19/2022: Gold rallies on falling yields, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rallied 1.4% to close at a one-week high above $1,841 as weak US data stoked demand for safe havens, pressuring bond yields and the dollar while lifting precious metals.

The index of US economic indicators fell 0.3% in April as consumer confidence and spending waned against the backdrop of spiking inflation and slowing global growth. Existing home sale fell 2.4% last month for the third straight month of declines. And first-time jobless rose to a four-month high of 218,000 last week.

The data underscored growing worries over a slowing economy while the Fed is embarking on the most aggressive tightening program in decades. Fed Chair Jerome Powell admitted earlier this week that "there could be some pain" in financial markets as the central bank struggles to contain rampant inflation.

Benchmark 10-year Treasury yields fell back under 2.8% midday as investors flocked to the perceived safety of government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tumbled more than 1% against major rivals as softer US data pushed Forex investors into haven currencies like the yen and Swiss franc. A weaker dollar lifts gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with silver and platinum jumping 1.7% and 3.2%, respectively, while palladium slipped 0.7%.

At the Comex close: June gold climbed $25.30 to $1,841.20; July silver added 36 cents, to $21.91; July platinum rose $27.30 to $953.70; and June palladium slid $14.20 to $1,978.40 an ounce.


5/18/2022: Gold dips on dollar rebound

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.2% to close under $1,816 after inflation worries sparked a selloff on Wall Street, lifting the dollar and pressuring alternative stores of value.

Weak quarterly earnings among major US retailers confirmed that rampant inflation is starting to erode corporate profits. Big box retailers like Target and Walmart acknowledged that they are under pricing pressure due to sky-high fuel and employment costs.

A recent poll CNBC-Momentiv found that more than half of Americans have cut back on dining out and driving and cancelled a monthly subscription because of rising prices. Most expect to pare spending further as if inflation stays high.

And a survey of manufacturers by the Philly Fed showed future business expectations fell to the lowest since the Great Recession in 2008, with 85% pointing to higher prices weighing on demand and profits.

US equities fell sharply on the dual prospects of higher prices and lower profits, with retailers leading the losses. The Dow lost 3.5% while the S&P 500 dropped nearly 4% and the Nasdaq 4.4%.

Benchmark 10-year Treasury yields pulled back as investors eschewed risk for the perceived safety of government debt. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a haven asset.

The dollar rose 0.5% against major rivals, bouncing after yesterday's 1% drop as Forex traders speculated that the Fed may need to be even more aggressive in tightening monetary policy. A stronger dollar pressures gold and other commodities by making them pricier overseas.

The other precious metals were also lower, with silver dropping 1% while platinum and palladium lost 2% each.

At the Comex close: June dipped $3 to $1,815.90; July silver dropped 21 cents to $21.54; July platinum lost $10 to $924.40; and June palladium shed $39.60 to $1,992.60 an ounce.


5/17/2022: Gold rises on dollar retreat

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.3% to close near $1,819 after upbeat US data stoked whetted risk appetite, pressuring the dollar and lifting alternative stores of value.

Retail sales grew 0.9% in April, in line with most forecasts, suggesting solid momentum in the economy despite rampant inflation. Car dealers led the way at 2.2%, with web retailers adding 2.1% and bars and restaurants, a key segment, rising 2%.

Industrial production was also strong in April, rising 1.1% to notch the fourth straight month above 0.8%. But broken supply chains and renewed shortages may cloud the outlook moving forward after the Empire State index, a weathervane for US manufacturing, fell into contraction last month.

Wall Street cheered the data, with the Dow and S&P 500 rising 1.3% and 2%, respectively, while the Nasdaq climbed2.8%.

Benchmark 10-year Treasury yields rose to a one-week high above 2.9% as investors gold government bonds in favor of risk assets.

The dollar retreated 0.8% for the third losing session as traders shifted towards riskier currencies. A falling dollar typically lifts gold and other commodities by making them less expensive overseas.

The other precious metals were also higher. Silver rose 0.9%; platinum added 2%; and palladium climbed 1.5%.

At the Comex close: June gold gained $5.90 to $1,818.90; July silver added 20 cents, to $21.75; July platinum picked up $18.10 to $943.40; and June palladium rose $29.60 to $2,032.20 an ounce.


5/16/2022: Gold gains on global growth concerns

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.3% to close at $1,814 as weak economic data raised concerns about global growth, stoking demand for safe havens.

New York's Empire State index of business conditions plunged more than 36 points in May to negative 11.2, with any reading below zero signaling contraction. New orders and shipments both declined sharply. The index is considered a key gauge of the health of US manufacturing.

The EU lowered its growth outlook for the eurozone economy for the next two years because of the Russian invasion of Ukraine. The region's GDP is now projected to grow 2.7% in 2022 and 2.3% in 2023, down from the respective 4% and 2.7% previously forecast.

China's economy has also hit a wall, with retail and factory activity decelerating sharply in April because of the resurgent pandemic and ensuing lockdowns.

Benchmark 10-year Treasury yields pulled back under 2.9% as investor flocked to the perceived safety of US government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked lower with yields, dipping 0.2% against major rivals. A weaker dollar typically lifts gold and other commodities by making them less expensive in other currencies, bolstering overseas demand.

The other precious metals were mostly higher, with silver and palladium adding 2.6% and 4.4%, respectively, while platinum dipped 0.6%.

At the Comex close: June gold gained $5.80 to $1,814; July silver climbed 55 cents to $21.55; July platinum slid $5.40 to $925.30; and June palladium rose $84.90 to $2,002.60 an ounce.


5/13/2022: Gold slides on risk rebound

Source: Bill Musgrave, American Gold Exchange

Austin — Extending its slide, gold fell 0.9% to close under $1,809 as resurgent risk appetite, higher bond yields, and an increasingly hawkish rate view from the Fed pressured alternative assets. The metal lost 3.9% for the week, its worst in 11 months.

US equities rebounded sharply as bargain-hunters speculated that the recent selloff is overdone and a bottom is near. The Dow bounced 1.5% higher while the S&P 500 and Nasdaq added 2.5% and 4%, respectively.

But all three indexes remain on track for weekly losses, with the S&P 500 flirting with a bear market correction of around 18% since its January peak.

Benchmark 10-year Treasury yields also bounced higher after two days of declines as traders shifted away from government debt. Higher yields are a headwind for gold because they increase the opportunity cost for holding it instead of bonds as a safe-haven asset.

The increasingly hawkish rate outlook from the Fed also supported bond yields after Cleveland Fed President Loretta Mester said a 75-basis-point increase is back on the table for September. Fed Chair Jerome Powell had calmed markets last week by saying a hike of that size is not being "actively considered" by the central bank.

The dollar edged down 0.1% on profit-taking after surging this week to a new 20-year high against major rivals. The buck still closed the week nearly 1% higher, pressuring gold and other commodities by making them more expensive in other currencies.

The other precious metals were mixed. Silver added 1.1%, but notched a weekly decline of 6.2%, its biggest since late January. Platinum edged down 0.1% while palladium rose 3.1%.

At the Comex close: June gold dropped $16.40 to $1,808.20; July silver rose 23 cents to $21; July platinum dipped 70 cents to $930.70; and June palladium climbed $57.10 to $1,917.70 an ounce.

  

Metal Ask      Change
Gold $1,854.58           Price Change Down Arrow $-2.62
Silver $22.15           Price Change Up Arrow $0.03
Platinum $962.46           Price Change Up Arrow $0.93
Palladium $2,070.04           Price Change Up Arrow $8.89
In US Dollars