Gold stays in range, hovering around $1,780 an ounce. After slipping early Monday as the dollar and U.S. Treasury yields edged higher, the yellow metal clawed back as some investors bought the dip. Many traders staying on the sidelines waiting for a clearer signal from the U.S. Federal Reserve’s and other central bank’s on policy tightening and the scaling back of pandemic stimulus efforts.
The Standard & Poor’s 500 Index had its best week since February last week, and the stronger equities, dollar and Treasurys made gold less attractive as an alternative investment. But inflationary concerns kept a floor under prices. Gold is a traditional hedge against inflation.
August gold futures rose 0.5% last week to settle at $1,777.80 an ounce on Comex after the front-month contract gained $1.10 on Friday. It’s down 6.7% 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 6.2% so far in 2021. The August contract is currently up $1.30 an ounce (+0.07%) to $1,779.10 and the DG spot price is $1,783.00.
Speculators cut their net long positions in Comex gold in the week ended June 22, according to the weekly Commitments of Traders report released Friday by the U.S. Commodity Futures Trading Commission.
U.S. consumer prices, a key measure of inflation, showed prices rose at their fastest annual rate since 2008 in May, according to data released Friday. The PCE price index jumped 0.4% last month in the third consecutive monthly increase, though the pace wasn’t as high as economists had estimated. The pace of inflation may influence monetary policymakers to shift the timetable of tapering their accommodative strategy.
Minneapolis Fed President Neel Kashkari said Friday that recent high inflation readings aren’t likely to last and U.S. workers would return to the labor market in high numbers in the coming months. 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.
Investors will be watching for the first-of-the month manufacturing reports from the U.S. and other major economies on Thursday as well as the U.S. June jobs report, set for release Friday, for further signals on the state of the economy. Other reports are due earlier in the week, including June consumer confidence on Tuesday and the ADP employment report Wednesday.
September silver futures advanced 0.6% last week to settle at $26.13 an ounce on Comex. The front-month contract rose 0.1% Friday. Silver is down 6.7% 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 1.1% so far this year. The September contract is currently up $0.129 an ounce (+0.49%) and the DG spot price is $26.20.
Spot palladium increased 6.9% last week to $2,650.00 an ounce, though it lost 0.2% Friday. It has retreated 6.9% in June after losing 4.1% in May. It’s up 8.1% so far in 2021. The DG spot price is up $36.30 an ounce to $2,666.50, currently.
Spot platinum rose 5.8% last week to $1,110.70 an ounce and rose 0.9% Friday. It’s down 6.5% in June after losing 1.5% in May. The autocatalyst metal is up 3.5% in 2021. Currently, the DG spot price is up $2.00 an ounce to $1,113.10.
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