Gold poised for a weekly and monthly gain early Friday supported by U.S. rate-cut bets and geopolitical uncertainty, as a key U.S. inflation measure comes in as expected.
The Fed’s favorite inflation measure, personal consumption expenditures price index, rose 0.2% for July, inline with expectations. This is up 2.6% from a year ago which is slightly softer than the 2.7% estimate. All-item inflation came in respectively at 0.2% and 2.5%, in line with forecasts. Personal income increased 0.3%, slightly higher than the 0.2% estimate, while consumer spending rose 0.5%, in line with the forecast. Gold slipped a touch, with DG spot gold off $8 an ounce, while the dollar rose on the news.
Prices rallied Thursday after Commerce Department data showed the U.S. economy grew at a revised 3% annual pace in the second quarter, up from a previous 2.8%. It was faster than the first quarter’s 1.4% growth rate. Consumer spending also rose at a 2.9% annual rate last quarter, up from the government’s 2.3% initial estimate.
Front-month gold futures rose 0.9% Thursday to settle at $2,560.30 an ounce on Comex, and the most-active December contract gained 0.6% in the first four days of the week. Bullion is up 3.5% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently down $9.70 (-0.38%) an ounce to $2550.60 and the DG spot price is $2519.50.
Next week will bring the closely watched U.S. monthly employment report for August. The Fed closely looks at both labor market and inflation data when crafting monetary policy. U.S. weekly initial jobless claims fell by 2,000 last week to 231,000 in Labor Department data released Thursday.
The central bank is overwhelmingly expected to begin interest rate cuts next month amid positive inflation data and signs that the labor market is weakening. Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets. Gold also hovered near record highs amid geopolitical risks, particularly related to the conflict in the Middle East.
Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting in September. About 69.5% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.
Front-month silver futures increased 1.2% Thursday to $29.99 an ounce on Comex, though the December contract fell 0.9% in the first four days of the week. Silver is up 3.6% this month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently down $0.294 (-0.98%) an ounce to $29.695 and the DG spot price is $29.40.
Spot palladium gained 4% Thursday to $994.50 an ounce and is up 3% so far this week. Palladium is up 4.9% this month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently down $1.10 an ounce to $993.00.
Spot platinum rose 1.2% Thursday to $950.10 an ounce but decreased 1.8% in the first four days of the week. Platinum is down 3.3% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. The current DG spot price is down $5.30 an ounce to $942.90.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.
Gold poised for a weekly and monthly gain early Friday supported by U.S. rate-cut bets and geopolitical uncertainty, as a key U.S. inflation measure comes in as expected.
The Fed’s favorite inflation measure, personal consumption expenditures price index, rose 0.2% for July, inline with expectations. This is up 2.6% from a year ago which is slightly softer than the 2.7% estimate. All-item inflation came in respectively at 0.2% and 2.5%, in line with forecasts. Personal income increased 0.3%, slightly higher than the 0.2% estimate, while consumer spending rose 0.5%, in line with the forecast. Gold slipped a touch, with DG spot gold off $8 an ounce, while the dollar rose on the news.
Prices rallied Thursday after Commerce Department data showed the U.S. economy grew at a revised 3% annual pace in the second quarter, up from a previous 2.8%. It was faster than the first quarter’s 1.4% growth rate. Consumer spending also rose at a 2.9% annual rate last quarter, up from the government’s 2.3% initial estimate.
Front-month gold futures rose 0.9% Thursday to settle at $2,560.30 an ounce on Comex, and the most-active December contract gained 0.6% in the first four days of the week. Bullion is up 3.5% in August after increasing 5.7% in July, its biggest monthly gain since March. Gold fell 0.3% in June. The metal rose 13% in 2023. The December contract is currently down $9.70 (-0.38%) an ounce to $2550.60 and the DG spot price is $2519.50.
Next week will bring the closely watched U.S. monthly employment report for August. The Fed closely looks at both labor market and inflation data when crafting monetary policy. U.S. weekly initial jobless claims fell by 2,000 last week to 231,000 in Labor Department data released Thursday.
The central bank is overwhelmingly expected to begin interest rate cuts next month amid positive inflation data and signs that the labor market is weakening. Rate cuts are considered bullish for gold because they make it a more attractive investment than some other assets. Gold also hovered near record highs amid geopolitical risks, particularly related to the conflict in the Middle East.
Investors tracked by the CME FedWatch Tool unanimously expect the Fed to begin interest rate cuts at the central bank’s next policy meeting in September. About 69.5% expect a 25 basis point cut, while the rest anticipate a 50 basis point cut. The Fed has kept interest rates at 5.25% to 5.50% for a year after raising them by 5.25 percentage points since March 2022 to rein in inflation.
Front-month silver futures increased 1.2% Thursday to $29.99 an ounce on Comex, though the December contract fell 0.9% in the first four days of the week. Silver is up 3.6% this month after dropping 2.1% in July and falling 2.9% in June. It ticked up 0.2% in 2023. The December contract is currently down $0.294 (-0.98%) an ounce to $29.695 and the DG spot price is $29.40.
Spot palladium gained 4% Thursday to $994.50 an ounce and is up 3% so far this week. Palladium is up 4.9% this month after decreasing 4.3% in July and gaining 8.1% in June. Palladium plummeted 38% last year. The DG spot price is currently down $1.10 an ounce to $993.00.
Spot platinum rose 1.2% Thursday to $950.10 an ounce but decreased 1.8% in the first four days of the week. Platinum is down 3.3% in August after losing 2.1% in July and falling 3.7% in June. Platinum dropped 6.8% in 2023. The current DG spot price is down $5.30 an ounce to $942.90.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.
, Gold poised for weekly and monthly gain
