AGE Daily Gold Update

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

7/26/2024: Gold jumps 1.2% on soft PCE

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose 1.2% to close above $2,395 as another round of soft inflation data reinforced rate-cut expectations from the Fed, pressuring Treasury yields and boosting alternative stores of value. The metal still declined 0.6% for the week. Silver picked up 0.2% to finish at $27.86 for a weekly loss of 4.2%.

The personal consumption expenditures index inched up 0.1% in June, dropping the 12-month inflation rate to 2.5% from 2.6% in May. The cost of goods fell 0.2% while the cost of services rose 0.2%, the smallest increase in eight months. The so-called core PCE, excluding food and energy, rose 0.2% for the month, leaving the 12-month rate unchanged at 2.6%.

The modest PCE print brought relief to the markets, which were bracing for higher readings after yesterday's stronger-than-expected quarterly GDP report showed the PCE rising to 2.9% in Q2. The Dow jumped 1.5% while the S&P 500 added 1% and the Nasdaq 0.8%.

Fears about a potentially stronger June PCE reading was a significant driver of yesterday's proft-taking selloff across most assets, including gold.

Benchmark-10-year Treasury yields fell back to 4.2% as traders speculated the disinflationary trend will spur the Fed to cut rates in September. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Platinum edged down less than 0.1% today but suffered a 6% decline this week. Palladium dropped 1% for a 1.7% weekly loss.

At the New York spot close: gold gained $28.10 to $2,380; silver added a nickel, to $27.86; platinum dipped 80 cents to $936.30; and palladium shed $9.10 to $886.90 an ounce.