Current Prices: Gold USD 2157.96/oz (AUD 3266.45) And Silver USD 24.14/oz (AUD 36.55)
Gold prices were under pressure on Tuesday, dropping more than 1%, after a hot U.S. inflation report dimmed prospects of the Federal Reserve cutting interest rates soon. Spot gold fell 1.2% trading near $US 2158 an ounce at the US close and silver fell by 1.35% trading near $US 24.12 an ounce.
US share markets climbed on Tuesday, as traders held on to bets of interest rate cuts by the US Federal Reserve in the coming months, even as February US consumer prices data came in slightly hotter-than-expected. The Dow Jones index rose by 236 points or 0.6%, the S&P 500 gained 1.1% to a new record closing high, and the Nasdaq index added 246 points or 1.5%.
US government bond yields rose on Tuesday after US consumer prices for February came in slightly above market expectations. The US Treasury sold $ US39bn of 10-year notes at a yield of 4.166% into weak demand. The US 10-year Treasury yield rose 5 points to 4.15% and the US 2-year Treasury yield lifted 5 points to 4.59%.
Currencies were weak against the US dollar in European and US trade. The Aussie dollar slid from US66.35 cents to US65.85 cents and was near US66.05 cents at the US close.
In US economic data, the consumer price index (CPI) rose by 0.4% in February (survey: +0.4%). The annual growth rate rose from 3.1% to 3.2% (survey: 3.1%). The core CPI (ex-food and energy) lifted 0.4% in February (survey: +0.3%). Annual core inflation eased from 3.9% to 3.8% (survey: 3.7%), the lowest since May 2021. The NFIB small business optimism index fell from 89.9 to 89.4 in February (survey: 90.5). Market expectations for the timing of the Fed’s first rate cut remained largely unchanged, pricing in a 69.8% chance of a cut of at least 25 basis points in June, according to CME’s FedWatch Tool, down from 71.7% in the prior session.
Australian gold prices fell by 1.00% ($32.94 per oz) to AUD 3267.37 at the US close.
Australian silver prices fell by 1.25% ($0.46 per oz) to AUD 36.54 at the US close.
The current Gold and Silver Ratio is 89.45
Current AUD/USD is 0.66074
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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