(Sponsored Content) New York spot gold eased 0.8% to hold above $2,370 recently, despite downticks in yields and the dollar as traders took profits from its record run. The gold price rose in 18 winning sessions over a 21-session stretch, gaining more than 10% during that span. Silver was nearly flat, adding less than 0.1% to finish at $28.40 an ounce, writes Bill Musgrave with Dana Samuelson, vice president and president, American Gold Exchange Inc.
The Fed's Beige Book reported steady economic growth in 10 of the Fed's 12 districts, with businesses "cautiously optimistic" about the rest of the year. Little movement was seen in reducing inflation.
The IMF raised its projections for US growth to 2.7% in 2024, up from 2.1% in January and 1.5% last October. But the agency warned that excessive US fiscal debt and deficits could have "spillover effects" on the global economy.
The stronger US economy is changing the calculus for rate cuts from the Fed. Fed funds futures traders now put the odds of an initial cut in September at 71%, with no more than two in 2024.
Benchmark 10-year Treasury yields receded under 4.6% as investors bought bonds to offset weaker US equities. Yields had jumped to the highest levels since early November following comments by Fed Chair Powell signaling that interest rates are unlikely to fall soon.
Tracking lower with yields, the dollar dipped 0.3% against major rivals, cushioning gold's slide by making it cheaper overseas.
Gold remains supported by global safe-haven inflows because of the Ukraine and Gaza wars, as well as aggressive central bank purchasing, especially by China, India, and Turkey. Citigroup now projects a target gold price of $2,875 in 2025.
Platinum fell 2.2% while palladium was nearly flat.
At the New York spot close recently: Gold eased $19.10 to $2,371.30; silver inched down 2 cents to $28.40; platinum shed $21 to $945.40; and palladium dipped 40 cents to $1,030.80 an ounce.
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