Gold futures concluded with gains on Friday (April 26) following the release of anticipated US inflation data, coupled with a decline in US bond yields. This favorable combination bolstered investor interest in gold contracts.
Gold futures saw an increase of $4.70, or 0.20%, settling at $2,347.20 per ounce. Conversely, silver futures dipped by 9.8 cents, or 0.35%, to $27.535 per ounce. Platinum futures experienced a slight uptick of $1.60, or 0.17%, closing at $921.10 per ounce, while palladium fell by $23.70, or 2.41%, settling at $958.30 per ounce.
The decrease in US bond yields provided support for gold futures, as lower bond yields reduce the opportunity cost of holding gold, which offers no interest return.
The US Department of Commerce’s announcement of a 2.7% year-on-year increase in the Headline PCE Price Index for March, surpassing February’s 2.5%, and aligning with analysts’ forecasts, played a significant role in driving investor sentiment. Similarly, the Core PCE Index, excluding food and energy categories and a key measure of inflation monitored by the Federal Reserve, rose by 2.8% year-on-year, slightly above analysts’ expectations.
Trader Tai Wong from New York noted that while the PCE data indicates a likelihood of sustained high inflation, the surge in gold prices suggests that the market may have already factored in this scenario. He emphasized that gold’s future trajectory will hinge on the broader investment landscape, particularly in risky assets, and the level of gold purchases in the Far East.
Wong anticipates gold prices to remain within the range of $2,300 to $2,400 in the near term. Supporting this sentiment, the China Gold Association reported a nearly 6% year-on-year increase in China’s gold consumption for the first quarter, indicating sustained demand for the precious metal in the region.
The Spot Market is Closed
Saturday, April 27, 2024
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 04.00 | 2,337.40 2,338.40 | +5.70 +0.24% | 2,328.10 2,352.80 |
| Silver 04.00 | 27.17 27.26 | -0.22 -0.80% | 26.98 27.76 |
| Platinum 04.00 | 913.00 923.00 | -1.00 -0.11% | 906.00 932.00 |
| Palladium 04.00 | 936.00 976.00 | -32.00 -3.31% | 935.00 1,014.00 |
| Rhodium 04.00 | 4,475.00 5,275.00 | 0.00 0.00% | 4,450.00 5,300.00 |