Today the BEA (Bureau of Economic Analysis) released the PCE (personal consumption expenditures) for April 2022. This report is the preferred inflation gauge used by the Federal Reserve as a key component to shape their forward guidance of monetary policy.

A glass half full

Gold futures had extremely modest gains in trading today. As of 5:10 PM EDT gold futures basis the June 2022 contract is trading $2.20 higher or 0.12% and fixed at $1848.50. However, the June contract month will conclude with first-day delivery notice to occur tomorrow Friday, May 27.

For the first time in a couple of years, Chairman Powell and other members of the Federal Reserve met in person rather than virtually at the FOMC meeting last month. Today the minutes from that meeting were released. It begins with an address to the American people from Chairman Powell;

As of 5:35 PM, EDT gold futures are currently up $17.70, a gain of almost a full percent, and fixed at $1865.50. Dollar weakness accounted for approximately one-third of today’s $17 gain. with the remaining increase attributable to market participants bidding the precious yellow metal higher. For the last 4 consecutive trading days, we have seen gold gain value.

103.80 was and continues to remain an important price level of technical resistance for the U.S. dollar index. The dollar index has flirted with this price point on three occasions, first occurring at the end of 2016 and then again during the first quarter of 2017.

Gold prices closed higher on the day and the week resulting in solid gains. As of 5:50 PM, EDT gold futures basis most active June contract is currently up $3.90 or 0.21% fixed at $1845.10. Considering that gold futures traded to a low this week of $1785 and closed near the highest value this week of $1848.60 gold had a good week.

Editor’s Note: I will be speaking at an upcoming conference The Vancouver Resource Investment Conference in British Columbia on May 17 and 18. For more information please click the link above.

Gold and silver sold off sharply today. A force taking gold lower was dollar strength which then led to selling pressure.

Today the Bureau of Labor Statistics (BLS) released the latest inflationary data vis-à-vis the Consumer Price Index for April 2022. As expected by many analysts the data revealed that inflationary pressures continue to run exceedingly hot. According to the report, the CPI “increased 0.3% in April on a seasonally adjusted basis after rising 1.2% in March,”.

Traders and investors are waiting for the release tomorrow of the Consumer Price Index inflation report that will be released right before New York markets open. The CPI will probably be one of the most important economic reports to be released by the government this month.