Gold Jumps on Inflation Data

Gold Jumps on Inflation Data

Gold jumps this morning on inflation data. The yellow metal boosted on news that inflation was inline with market expectations on the way to its first weekly gain in four weeks.

While May’s core personal consumption expenditures price index (CPI) leapt 3.4% from a year ago (The biggest such increase since 1992) it was in line with Wall Street’s forecast. In this morning’s other economic data, consumer spending was flat for the May, missing expectations, and personal income dropped 2%, less than the expected 2.7%.

August gold futures had fallen 0.4% Thursday to settle at $1,776.70 an ounce on Comex. The front-month contract gained 0.5% in the first four days of this week. It’s down 6.8% so far this month after advancing 7.8% in May, the best month for the precious metal since July. Gold gained 3% in April and dropped in January, February and March. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic and is down 6.3% so far in 2021. The August contract is currently down $11.20 an ounce to $1,787.90 and the DG spot price is $1,788.20.

Investors on Friday were awaiting the release of May personal income, consumer spending and personal consumption data Friday. U.S. weekly initial jobless claims held above 400,000 for a second week, data released Thursday showed, missing economists’ estimates. The numbers remained elevated as the labor market struggled to rebound from the COVID-19 pandemic.

The COVID-19 virus has killed about 3.9 million people worldwide and sickened around 180 million. The U.S. has had more cases than any other nation, but domestic levels are dropping as vaccination becomes more widespread.

September silver futures dropped 0.2% Thursday to settle at $26.09 an ounce on Comex. The front-month contract rose 0.5% in the first four days of the week. Silver is down 6.9% so far this month after rallying 8.3% in May in the best monthly performance since December. The metal advanced 5.5% in April and dropped in February and March. It rose 47% in 2020 and is down 1.2% so far this year. Currently, the September contract has gained $0.246 an ounce to $26.335 and the DG spot price is $26.25.

Spot palladium increased 0.5% Thursday to $2,655.00 an ounce and is up 7.1% so far this week. It has advanced 6.7% in June after losing 4.1% in May. It’s up 8.3% so far in 2021. Currently, the DG spot price has slipped $2.40 an ounce to $2,654.50.

Spot platinum rose 0.2% Thursday to $1,100.70 an ounce and advanced 4.9% the first four days of this week. It’s down 7.3% in June after losing 1.5% in May. The autocatalyst metal is up 2.5% in 2021. The DG spot price is currently up $12.40 an ounce to $1,113.30.


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