Gold takes a dip in morning trading, but is still pretty steady after a report showed U.S. inflation rose more than expected last month. The news boosted equities while the dollar weakened, lending support to the yellow metal
Consumer prices rose at the fastest pace in almost nine years in March, boosting gold, which can be used as a hedge against inflation. The consumer price index increased 0.6% from February and 2.6% from a year earlier, according to data released by the Labor Department.
The report weighed on the dollar, though Treasury yields managed to rally. Treasurys, the dollar and gold are all assets traditionally used as hedges against inflation, but most of the recent trading has gone into Treasurys and the dollar, and that has pressured gold.
Front-month gold futures rose 0.9% Tuesday to settle at $1,747.60 an ounce on Comex. The June contract is up 0.2% so far this week. The yellow metal rallied for the first time in three weeks last week. Futures slipped 0.8% in March after posting their worst month since 2016 in February. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic. Currently, the June contract is down $9 an ounce to $1,738.40 and the DG spot price is $1,737.60.
Bitcoin jumped to an all-time high. New York real estate mogul Kent Swig has secured at least $6 billion in gold reserves to back his knew cryptocurrency DIGau, which will be pegged to the price of gold, Bloomberg reported.
In upcoming economic news, Federal Reserve Chairman Jerome Powell is set to appear on a panel Wednesday, and the Beige Book — a snapshot of the economic situation by the Fed’s 12 regional banks — will come out in the afternoon. Initial jobless claims will be released Thursday. In China, economic growth, industrial production and retail sales figures are due Friday.
Philadelphia Fed President Patrick Harker said Tuesday that the central bank doesn’t see inflation as out of control and would maintain its accommodative monetary policy as the economy strives to emerge from the pandemic.
The COVID-19 virus has killed almost 2.96 million people worldwide and sickened more than 137.2 million. About 23% of the cases — and 19% of the deaths — are in the U.S. The country has almost 31.3 million cases, more than any other nation.
May silver futures increased 2.3% Tuesday to settle at $25.43 an ounce on Comex. The contract added 0.4% in the first two days of the week. Silver dropped 7.2% in March after decreasing 1.8% in February, its first retreat in three months. It gained 1.9% in January and 47% in 2020. The May contract is down $0.066 an ounce to $25.360 and the DG spot price is $25.36.
Spot platinum retreated 1% Tuesday to $1,168.50 an ounce and is down 3.6% so far this week. Platinum was flat in March after rallying 11% in February amid forecasts for higher demand and tighter supplies. The autocatalyst metal rose 0.5% in January and 11% in 2020. The DG spot price is up over $15 an ounce to $1,179.00.
Spot palladium gained 0.9% Tuesday to $2,717.50 an ounce and increased 2% in the first two days of the week. Palladium advanced 13% in March. The metal gained 4.9% in February, plummeted 9% in January and rallied 26% in 2020. The current DG spot price is down $14.90 an ounce to $2,707.00.
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