Gold Pressured by Dollar

Gold Pressured by Dollar

Gold pressured by the dollar this morning after rebounding above the $1,900-an-ounce threshold overnight. The yellow metal’s early morning climb was sparked by the report showing a surge in U.S. inflation wasn’t seen by investors as enough for the U.S. Federal Reserve to tighten monetary policy.

The yellow metal — a traditional hedge against inflation — also got a boost as U.S. Treasury yields weakened and the Standard & Poor’s 500 Index closed at a record. The U.S. consumer price index rose at its fastest pace in 13 years in May, data released Thursday showed.

August gold futures rose 90 cents Thursday to settle at $1,896.40 an ounce on Comex and are up 0.2% in the first four days of the week. The front-month contract advanced 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, though it’s little changed so far in 2021. Currently, the August contract is down $8.10 an ounce to $1,888.30 and the DG spot price is $1,884.30.

U.S. consumer prices rose 5% in May from a year earlier, according to data released by the Labor Department, faster than the 4.7% rate forecast by economists surveyed by Dow Jones.

In a decision that may foreshadow a Fed policy meeting next week, the European Central Bank on Thursday declined to signal when it may ease off on its pandemic-era stimulus, arguing that high inflation will be temporary and remain below its target.

Meanwhile, leaders of the Group of Seven industrialized nations are meeting in England. They are expected to together pledge 1 billion vaccines to be distributed to poorer nations to help the world emerge from the pandemic. Industrialized nations are rebounding faster than countries in the Global South as vaccines are much more widely available.

The COVID-19 virus has killed about 3.77 million people worldwide and sickened around 174.9 million. About 19% of the cases — and 16% of the deaths — are in the U.S. The country has about 33.4 million cases, more than any other nation, though its proportion of both new cases and deaths has been declining and places like India have escalated.

July silver futures gained 0.1% Thursday to settle at $28.03 an ounce on Comex. They increased 0.5% in the first four days of the week. Silver gained 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 up 6.1% so far this year. The July contract is currently up $0.309 an ounce to $28.340 and the DG spot price is $28.28.

Spot palladium retreated 0.1% Thursday to $2,788.50 and is down 2.2% so far this week. It lost 4.1% in May. It’s up 14% so far in 2021. Currently, the DG spot price is up $18.30 an ounce to $2,806.00.

Spot platinum fell 0.4% Thursday to $1,153.00 an ounce and is down 1.7% for the first four days of the week. It lost 1.5% in May. The autocatalyst metal is up 7.4% in 2021. The DG spot price is up $7.60 an ounce to $1,160.00.


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