AGE Daily Gold Update

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

1/15/2025: Gold rallies on softer inflation

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rallied 1.3% to close above $2,712 after a tamer-than-expected CPI shifted the calculus for rate cuts from the Fed, pressuring yields and the dollar. Silver surged 3.9% to finish at $31.32 an ounce.

The consumer price index increased 0.4% in December, as expected, lifting the 12-month rate to 2.9% from 2.7% in November. A huge jump in energy costs accounted for 40% of the increase, which was the biggest since July.

However, the more-important core CPI, factoring out food and energy costs, rose merely 0.2%, lowering the 12-month rate to 3.2% from 3.3% in November. Combined with yesterday’s soft PPI report, which showed wholesale inflation slowing, the CPI data suggested that underlying inflation is subsiding after several months of stubborn stickiness.

Benchmark 10-year Treasury yields fell sharply as traders speculated that the Fed will now be more inclined to cut interest rates this year. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar pulled back 0.2%, lifting gold and other commodities by making them less expensive in other currencies.

Platinum slipped 0.5% while palladium advanced 3.1%.

At the New York spot close: gold gained $35 to $2,712.50; silver jumped $1.19 to $31.32; platinum dipped $4.90 to $931.30; and palladium picked up $29 to $969.70 an ounce.