AGE Daily Gold Update

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

7/9/2024: Gold rises despite yields, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose 0.2% to close above $2,360 despite upticks in Treasury yields and the dollar as bargain-hunters lifted demand ahead of this week's CPI release. Silver added 0.3% to finish at $30.72 an ounce.

Benchmark 10-year Treasury yields edged up for the first time in five sessions after Fed Chair Jerome Powell, testifying before the Senate banking committee, refused to commit to the timing of rate cuts. Tracking with yields, the dollar added 0.1% against major rivals.

Emphasizing that he was not sending "any signals about the timing of any future actions," Powell acknowledged that the US economy is no longer "overheated" and the job market "is fully back in balance" after pandemic-related turmoil. He added that "more data would strengthen the case" for rate cuts.

While rising yields and a stronger dollar typically weigh on gold demand, traders looked ahead to Thursday's release of the June consumer price index. Annualized inflation is expected to fall to 3.1% from 3.3% in May, perhaps giving Powell the confidence he needs to begin loosening monetary policy.

Fed fund futures to see a 76% chance of a rate cut in September, with a second one likely in December.

Platinum and palladium dropped 1.6% and 2.8%, respectively.

At the New York spot close: gold gained $4.90 to $2,360.10; silver added 10 cents, to $30.72; platinum shed $16.50 to $992.20; and palladium retreated $28.50 to $986.20 an ounce.