Gold and silver declined Friday, along with treasury yields as inflation data came in weaker than expected for May. Core personal consumption expenditures (PCE) rose 4.7% year-over-year in May, slightly missing estimates. Gold found support at the $1,800 threshold and is currently trading at $1806, but silver dipped below $20 for the first time in nearly 2 years. Stocks are up heading into the long weekend on the inflation news with the Nasdaq and S&P each up about 0.5% and the Dow up 0.75%.
Gold and silver are currently trading at $1,819 and $21.81, virtually unmoved in an involatile trading session Wednesday. Stocks appear directionless, fluctuating between gains and losses today, as investors digest the current inflation and quantitative tightening landscape heading into July. US GDP for Q1 was revised downward today to a 1.6% contraction and consumer confidence hit a 16-month low, as inflation continues to weigh on buyers. The GDP data coupled with yesterday’s consumer confidence index do little to curb recession fears as economic growth outlook continues to stall.
Gold is down a few dollars to begin the week, currently trading at $1,824.50, as treasury yields rose with the 10-year passing 3.2% to reach a 5-day high. Stocks began the session up across the board, but the Nasdaq retreated and is 0.4% in the red while the Dow and S&P are each up about 0.1%.
Metals rose modestly Friday, but are still looking to close the week in the red with gold and silver down 0.5% and 2.0%, respectively. Stocks soared Friday with the Dow gaining 645 points, or 2.1%. The Nasdaq and S&P 500 are each up about 2.4% as well. This week’s rally will help equities snap a 3-week losing streak. The rise comes as long-term inflation and Fed benchmark predictions have both been modified downwards, giving confidence to investors during this uncertain time.
Metals are on pace for a weekly loss, however, out-performed equities significantly as markets continue to react to this week’s Fed decision and the increasing likelihood of a coming recession. Gold is on pace for a 1.8% weekly decline and silver is down 1.5%. Stocks are in the green today, but on pace for a 6% loss as these recession fears grow. Cryptos were hardest hit this week, with Bitcoin losing more than 20% of its value since Monday.
Equities began the day in the green and jumped higher after the Fed announced a 0.75% rate hike this afternoon, which was expected after last month’s CPI. The Nasdaq is outperforming the other indices which is surprising since it has been hit the hardest in recent months by rising rates. Gold and silver are also firmly in the green, currently trading at $1,832 and $21.70.
Friday’s equities selloff intensified Monday with all three major indices plunging in a way that is reminiscent of March 2020. Inflation worries have investors second guessing Fed Chair Powell’s commitment to a modest rate hike in this week’s FOMC meeting. The Dow is currently down 2.2% and the S&P 500 is down 3.2%. The Nasdaq, which has been most vulnerable to rising rates, is down nearly 4% two hours into the trading session. Metals also fell with gold and silver down 2.3% and 3.8%, respectively. Bitcoin plunged 12.5% today as cryptos continue to get hammered amid rising prices.
Metals and equities plunged Friday morning after inflation hit a new 40-year high, rising 8.6% in May, topping estimates by 0.3%. Gold and silver have since recovered today’s losses with gold on pace for a weekly gain, up about $40 from today’s low. Stocks did not recover, and closed the week firmly in the red. The Dow and S&P each shed over 2% and the Nasdaq dipped 3.5% Friday as inflation data rattled investors.
Gold fell today on light to moderate trading volume prompted by an up tick in the $US and treasury yields. Market participant’s fears continue to mount as they wait for next week’s fed announcement on the next round of rate increases. Gold for August delivery finished the day down a fraction (-.30%) but holding within its two-week range. Silver for July delivery ticked up .80%, but like gold, remains within its two-week range.
Gold is trading at $1,854, a two-week high as both metals and equities ticked up to begin the week. Treasury yields have stabilized lower than the previous two weeks, with the 10-year returning to the 2.85% area after rising as high as 3.2% after the last Fed meeting. Stocks rose across the board today; the Dow gained 600 points or nearly 2% and the S&P 500 and Nasdaq each rose about 1.6% Monday.