Current Prices: Gold USD 2338.66/oz (AUD 3539.49) And Silver USD 32.02/oz (AUD 48.45)
Gold Price fell on Wednesday as a stronger dollar, higher bond yields and hawkish comments from a Fed official on Tuesday still weighed on sentiment. Spot gold fell by 0.96% trading near $US 2337.84 an ounce at close and Silver fell by 0.45% trading near $US31.94 an ounce.
US share markets fell on Wednesday amid further gains in US bond yields and concern over the timing and scale of possible interest rate cuts from the US Federal Reserve. The Dow Jones index fell by 411 points or 1.1%, the S&P 500 index dipped 0.7% and the Nasdaq index shed 99 points or 0.6%.
US government bond yields climbed on Wednesday as the US Treasury’s final auction of the week reinforced a trend of lacklustre demand in the market. The US Treasury sold $US44 billion of 7-year bonds into weak demand at a yield of 4.65%. The US 10-year Treasury yield rose 7 points to 4.62%. The US 2-year Treasury yield lifted 2 points to 4.97%.
Currencies were weaker against the US dollar in European and US trade. The Aussie dollar dipped from US66.60 cents to US66.08 cents and was near US66.10 cents at the US close.
In US economic data, the Richmond Fed manufacturing index rose from -7 in April to 0 in May (survey: -7). The US economy expanded at a “slight or modest” pace across most regions since early April and consumers pushed back against higher prices, the Fed said in its Beige Book survey of regional business contacts.
Australian gold prices were down 0.40% (-$14.17 per oz) to AUD 3537.15 at the US close.
Australian silver prices were up 0.20% (+$0.10 per oz) to AUD 48.37 at the US close.
The current Gold and Silver Ratio is 73.08
Current AUD/USD is 0.66086
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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