Business News Asia
Gold futures closed higher on Friday (May 27), supported by the weakening of the U.S. dollar, which made dollar-denominated gold contracts cheaper for holders of other currencies. Weak U.S. economic data also boosted safe-haven buying.
- The gold futures were up $3.4, or 0.18%, at $1,857.3 per ounce.
- Silver futures were up 13.1 cents, or 0.6%, at $22.096 an ounce.
- Platinum was up $5.6, or 0.6%, at $943 per ounce.
- The palladium futures were up $58.10, or 2.9%, at $2,054.80 an ounce.
Gold contracts were driven by the depreciation of the dollar. The dollar index against the six major currencies in a basket of currencies fell 0.16% to 101.6670.
Weak U.S. economic data is driving safe-haven gold buying. According to a University of Michigan survey, the consumer sentiment index fell to 58.4 in May, its lowest level since August 2011 and down from 65.2 in April
In addition, the Department of Commerce published the Personal Consumption Expenditure (PCE) index.
The general PCE index, which includes the food and energy category, rose 6.3% in April from a year earlier. It slowed after rising 6.6% in March, the highest level in 40 years.
The slowdown in the overall PCE index in April was the first since November. Compared with the previous month, the overall PCE index rose by 0.2% in April, compared with 0.9% in March.
The core PCE index, which excludes food and energy and measures inflation, rose 4.9% year over year in April, slowing from 5.2% in March.
The core PCE index slowed for the second month in a row in April. On a month-on-month basis, the core PCE index rose by 0.3% in April, following a 0.3% increase in March.
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Saturday, May 28, 2022