Current Prices: Gold USD 2321.81/oz (AUD 3483.30) And Silver USD 29.60/oz (AUD 44.41)
Gold Price gained ground but lost some shine in the wake of the Fed’s updated economic projections. Spot gold rose by 0.36% trading near $US 2324.82 an ounce at close and silver up by 1.55% trading near $US29.72 an ounce.
US share markets were mixed on Wednesday. The S&P 500 and Nasdaq indexes posted record closing highs for a third straight day after US consumer prices data came in softer than expected but the indexes ended off the day’s highs as the US Federal Reserve projected only one interest rate cut this year. The Dow Jones index fell 35 points or 0.1%. But the S&P 500 index gained 0.9%, topping 5,400 for the first time, and the Nasdaq index rose 265 points or 1.5%.
US government bond yields fell on Wednesday after an inflation reading came in softer-than-expected, raising hopes for a rate cut from the Fed in the coming months. Treasuries held gains after the US central bank reduced the number of projected interest-rate cuts this year to just one from three. The US 10-year Treasury yield fell 8 points to 4.32% and the US 2-year Treasury yield slid 8 points to 4.76%.
Currencies were stronger against the US dollar in European and US trade. The Aussie dollar lifted from US66.07 cents to US67.03 cents and was near US66.60 cents at the US close.
US economic data, the consumer price index (CPI) was flat in May (survey: +0.1%). The annual growth rate fell from 3.4% to 3.3% (survey: 3.4%). The core CPI (ex-food & energy) lifted 0.2% in May (survey: +0.3%). Annual core inflation fell from 3.6% to 3.4% (survey: 3.5%), its slowest pace in three years.
Australian gold prices were down by 0.51% (-$17.92 per oz) to AUD 3489.45 at the US close.
Australian silver prices rose 0.65% (+$0.28 per oz) to AUD 44.61 at the US close.
The current Gold and Silver Ratio is 78.53
Current AUD/USD is 0.66672
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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