Gold Futures Market News and Commentary
August gold (GCQ21) on Friday closed down -5.80 (-0.33%), and July silver (SIN21) closed up +0.113 (+0.44%).
Gold and silver prices on Friday settled mixed. A rally in the dollar index to a 2-month Friday and hawkish Fed comments were bearish for metals. On the positive side, a decline in T-note yields on Friday supported gains in metals, along with weakness in stocks that sparked some safe-haven demand for precious metals.
Lower global bond yields are bullish for precious metals. The 10-year T-note yield on Friday fell -5.6 bp to 1.448%. The 10-year German bund yield fell -0.5 bp at -0.200%, and the 10-year UK gilt yield is dropped -2.3 bp to 0.752%.
Stronger-than-expected global price pressures are positive for gold demand as an inflation hedge. German May PPI rose +1.5% m/m and +7.2% y/y, stronger than expectations of +0.7% m/m and +6.4% y/y. The +7.2% y/y gain was the largest year-on-year increase in 12-1/2 years. Also, Japan May national CPI ex-fresh fo... Read more