Current Prices: Gold USD 2315.77/oz (AUD 3515.13) And Silver USD 27.25/oz (AUD 41.36)
Gold prices slipped, giving up the previous session’s gains, as traders remained focused on the prospect for Fed rate cuts. Spot gold fell by 0.43% trading near $US 2313.72 an ounce at the US close and silver fell by 0.71% trading near $US 27.22 an ounce.
US share markets were mixed on Tuesday as the rally that powered stocks in early May struggled to gain further traction, with investors split on whether the market can sustain the recent advance The Dow Jones index rose by 32 points or 0.1%, up for a fifth straight session, marking its longest winning streak since December. The S&P 500 index also gained 0.1% but the Nasdaq index shed 17 points or 0.1%.
Longer-dated US government bond yields fell on Tuesday amid persistent hope that the US Federal Reserve would lower rates this year. The US Treasury sold $ US58bn of 3-year notes at a yield of 4.605%into solid demand. The US 10-year Treasury yield fell by 3 points to 4.46% but the US 2-year Treasury yield rose by 1 point to 4.83%.
Currencies were mixed against the US dollar in European and US trade. The Aussie dollar rose from US65.85 cents to US66.23 cents and was near US66.00 cents at the US close.
In US economic data, consumer credit increased $US6.3bn in March (survey: $US15 billion). In Australia yesterday, the RBA left the cash rate on hold at 4.35% as widely expected. The post-meeting statement kept a neutral bias, allowing the Board complete optionality over the next move. In the press conference, Governor Bullock did confirm the Board considered the case to increase the cash rate.
Australian gold prices were flat trading at AUD 3507.30 at the US close.
Australian silver prices fell by 0.32% (-$0.13 per oz) to AUD 41.20 at the US close.
The current Gold and Silver Ratio is 85
Current AUD/USD is 0.65883
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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By: William Tao
Guardian Gold Precious Metal Analyst
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