FINWIRES · TerminalLIVE
FINWIRES

Update: Gold Edges Up as Dollar Eases Even as US Inflation Accelerates

By

(Updates prices in the second and final paragraphs.)

Gold moved higher midafternoon on Thursday as the dollar eased, while a key U.S. inflation measure accelerated last month.

Gold for August delivery was last seen up 0.9% to US$4,046.40 per ounce after falling to the lowest since Nov. 6 a day earlier.

The U.S. Bureau of Economic Analysis on Thursday reported that May personal consumption expenditures index, the Federal Reserve's preferred inflation measure, rose at a 4.1% annualized pace, matching expectations but up from 3.8% in April. Core PCE, excluding volatile items, rose 3.4% annualized, up from 3.3% a month earlier, but again matching expectations.

The price of the precious metal is down 12% over the past month, falling as investors turn to the greenback amid inflation concerns. The Fed's policy committee last week warned it may raise interest rates this year to combat rising costs, boosting the dollar and sending traders away from gold, which pays no interest.

"The latest leg lower has been driven by the dollar's week-long surge, with the greenback posting a fresh 13-month high on Wednesday," Ole Hansen, head of commodity strategy at Saxo Bank, wrote. "It continues to benefit from carryover support following last week's hawkish FOMC message, which revived speculation that U.S. interest rates may need to rise later this year. For non-interest-paying metals, that has lifted the perceived cost of holding exposure at a time when investor confidence is already fragile."

However the dollar edged down early, with the ICE dollar index down 0.18 points to 101.42. Treasury yields were lower, with the U.S. two-year note down 4.1 basis points to 4.119%, while the yield on the 10-year note was down 0.1 points to 4.389%.

Related Articles

Sectors

SSR Mining Closes Sale of 80% Interest in the Copler Mine for US$1.49 Billion

SSR Mining (SSRM) after the close on Wednesday said it completed the sale of its 80% stake in the Copler mine and related properties in Turkiye to Cengiz Holding A.S. and its affiliates, receiving approximately US$1.49 billion in cash after working-capital adjustments.Its shares closed C$1.31 down to C$40.28 on Toronto Stock Exchange.

$SSRM.TO
Sectors

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index dropping 2.4% and the State Street Energy Select Sector SPDR ETF (XLE) falling 1.9%.The Philadelphia Oil Service Sector Index slumped 3.7%, and the Dow Jones US Utilities Index was up 0.7%.In sector news, ships have started sailing through the Strait of Hormuz under a new scheme by the International Maritime Organization to evacuate trapped vessels, a spokesperson told Reuters on Wednesday. The initiative will enable hundreds of ships with some 11,000 seafarers stranded in the Gulf to sail through Hormuz.Front-month West Texas Intermediate crude oil fell 4.4% to $70.01 a barrel, and the global benchmark Brent crude contract dropped 5% to $73.25 a barrel. Henry Hub natural gas futures rose 2.6% to $3.23 per 1 million BTU.US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 15.1 million barrels in the week ended June 19 following a decrease of 17.2 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks declined by 6.1 million barrels after an 8.3-million-barrel decline in the previous week, a larger decrease than the 3.6 million barrel decrease expected in a survey compiled by Bloomberg.In corporate news, Chevron's (CVX) Project Kilby, a planned 2.7-gigawatt power project for Microsoft's (MSFT) data centers in West Texas, could be expanded over time as Microsoft's power needs exceed the project's initial capacity, UBS Securities said following meetings with the company at an industry conference. Chevron shares were shedding 2.2%.TotalEnergies (TTE) said Wednesday it has acquired a 10% stake in the Bab Gas Cap Concession in Abu Dhabi, joining an international consortium to develop the major onshore gas field. TotalEnergies shares were down 2%.Sunrun (RUN) shares jumped 14% after the company agreed with Tesla (TSLA) and Renew Home to deliver more than 16 gigawatts of flexible energy capacity to hyperscalers and utilities.Consolidated Edison (ED) Chief Executive Tim Cawley said the company needs to expand parts of its grid equipment to weather longer and more intense heat waves, Reuters reported Tuesday, citing Cawley's remarks at a forum held the same day. Consolidated Edison shares were rising 1.7%.

$CVX$ED$RUN$TTE
Sectors

Sector Update: Financial Stocks Softer Late Afternoon

Financial stocks were decreasing in late Wednesday afternoon trading, with the NYSE Financial Index down 0.1% and the State Street Financial Select Sector SPDR ETF (XLF) shedding 0.2%.The Philadelphia Housing Index was climbing 5.8%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was up 0.2%.Bitcoin (BTC-USD) was dropping 4.8% to $59,625, and the yield for 10-year US Treasuries fell 9.3 basis points to 4.40%.In economic news, US new-home sales decelerated to a 580,000 annual rate in May from an upwardly revised 626,000 rate in April, below the 640,000 rate expected in a Bloomberg-compiled survey. Home sales were down 6.8% from May 2025.Mortgage applications in the US increased last week as refinancing activity improved while home purchase demand edged lower, the Mortgage Bankers Association said. The market composite index, which measures loan application volume, increased 1% in the week ended June 19. On an unadjusted basis, the index decreased 10% compared with the previous week.In sector news, the US Securities and Exchange Commission's enforcement division is investigating funds popular among private equity firms that allow them to hold assets they either cannot or do not wish to sell, Reuters reported. The investigators are looking into potential conflicts of interest around continuation vehicles, how assets are valued and whether disclosures are consistent and sufficient, the report said.In corporate news, a Blackstone Mortgage Trust-originated (BXMT) loan on a 40-story Chicago office tower defaulted after the debt reached its maturity deadline on June 9, Bloomberg reported, citing a mortgage filing. New York-based real estate firm 601W defaulted on the $343 million loan on June 9, the filing showed, according to the report. Blackstone Mortgage Trust shares were down 3.8%.Morgan Stanley's (MS) $7 billion private credit fund capped investor withdrawals at 5% in Q2 after shareholders sought to redeem 11.6% of outstanding shares, Bloomberg reported. More than half of the latest redemption requests at the North Haven Private Income Fund came from investors who were unable to fully exit the fund in the previous quarter, the report said. Morgan Stanley shares fell 2.2%.Brookfield Asset Management (BAM) and the Artificial Intelligence Infrastructure Partnership are among possible bidders for Stack Infrastructure's data centers in the Asia Pacific, Bloomberg reported. Other potential suitors include KKR (KKR), the report said. Brookfield shares were down 4.2%, and KKR shed 2.6%.ProAssurance (PRA) shares rose 1.4% after the company said it has received all regulatory approvals for its planned merger with The Doctors Co.

$BAM$BXMT$KKR$MS$PRA