Daily Market Report

GOLD JUMPS ON INFLATION DATA

Gold jumps this morning on inflation data. The yellow metal boosted on news that inflation was inline with market expectations on the way to its first weekly gain in four weeks.

While May’s core personal consumption expenditures price index (CPI) leapt 3.4% from a year ago (The biggest such increase since 1992) it was in line with Wall Street’s forecast. In this morning’s other economic data, consumer spending was flat for the May, missing expectations, and personal income dropped 2%, less than the expected 2.7%.

August gold futures had fallen 0.4% Thursday to settle at $1,776.70 an ounce on Comex. The front-month contract gained 0.5% in the first four days of this week. It’s down 6.8% so far this month after advancing 7.8% in May, the best month for the precious metal since July. Gold gained 3% in April and dropped in January, February and March. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the pandemic and is down 6.3% so far in 2021. The August contract is currently down $11.20 an ounce to $1,787.90 and the DG spot price is $1,788.20.

Investors on Friday were awaiting the release of May personal income, consumer spending and personal consumption data Friday. U.S. weekly initial jobless claims held above 400,000 for a second week, data released Thursday showed, missing economists’ estimates. The numbers remained elevated as the labor market struggled to rebound from the COVID-19 pandemic.

The COVID-19 virus has killed about 3.9 million people worldwide and sickened around 180 million. The U.S. has had more cases than any other nation, but domestic levels are dropping as vaccination becomes more widespread.

September silver futures dropped 0.2% Thursday to settle at $26.09 an ounce on Comex. The front-month contract rose 0.5% in the first four days of the week. Silver is down 6.9% so far this month after rallying 8.3% in May in the best monthly performance since December. The metal advanced 5.5% in April and dropped in February and March. It rose 47% in 2020 and is down 1.2% so far this year. Currently, the September contract has gained $0.246 an ounce to $26.335 and the DG spot price is $26.25.

Spot palladium increased 0.5% Thursday to $2,655.00 an ounce and is up 7.1% so far this week. It has advanced 6.7% in June after losing 4.1% in May. It’s up 8.3% so far in 2021. Currently, the DG spot price has slipped $2.40 an ounce to $2,654.50.

Spot platinum rose 0.2% Thursday to $1,100.70 an ounce and advanced 4.9% the first four days of this week. It’s down 7.3% in June after losing 1.5% in May. The autocatalyst metal is up 2.5% in 2021. The DG spot price is currently up $12.40 an ounce to $1,113.30.

Disclaimer: This editorial has been prepared by AmeriGold for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to AmeriGold. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of AmeriGold. AmeriGold shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.

 

Investing in Precious Metals

Many Investment advisors recommend precious metals as part of a properly diversified portfolio to provide capital appreciation, liquidity, and a hedge against conventional paper assets. Because precious metals are counter-cyclical to paper assets, a diversification into gold, silver, and platinum can therefore reduce the total risk of your overall portfolio and preserve your wealth. History supports the premise that investment in precious metals is the best protection against uncertainties in the future.

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