Current Prices: Gold USD 2350.77/oz (AUD 3513.59) And Silver USD 30.75/oz (AUD 45.96)
Gold Price rose on Monday as weaker-than-expected U.S. economic data cemented expectations that the Federal Reserve would cut interest rates later this year, sending the dollar and bond yields lower. Spot gold jumped by 1.02% trading near $US 2350.57 an ounce at close and Silver also increased by 1% trading near $US30.71 an ounce.
US sharemarkets finished mostly higher on Monday. The Dow Jones fell 115 points or 0.3% but the S&P 500 gained 0.1% and the Nasdaq added 94 points or 0.6%.
US government bond yields fell on Monday after data showed that US manufacturing activity slowed for a second straight month in May, boosting expectations that the Fed will cut interest rates later this year. The Institute for Supply Management’s survey showed new goods orders dropped by the most in nearly two years, but a measure of input inflation fell back from the highest since mid-2022. The US 10-year Treasury yield fell 12 points to 4.39% and the US 2-year Treasury yield decreased 8 points to 4.81%.
Currencies were stronger against the US dollar in European and US trade. The Aussie dollar lifted from US66.32 cents to US66.93 cents and was near US66.90 at the US close.
In US economic data, the ISM manufacturing PMI fell from 49.2 to 48.7 in May (survey: 49.5). The S&P Global manufacturing PMI lifted from 50 to 51.3 in May (survey: 50.9). Construction spending slid 0.1% in April.
Australian gold prices were up 0.47% (+$16.42 per oz) to AUD 3514.06 at the US close.
Australian silver prices rose 0.52% (+$0.24 per oz) to AUD 45.93 at the US close.
The current Gold and Silver Ratio is 76.49
Current AUD/USD is 0.66917
Gold (Yellow) vs Silver (White) vs ASX200 (Green) YTD Returns
Gold (Yellow) vs Silver (White) vs ASX200 (Green) Rolling 12 Month Returns
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Author: William Tao – Guardian Gold – Precious Metal Analyst
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