Gold Drops Despite Rising US Inflation

Inflation and Gold Coins
Gold declined even as a report noted rising US inflation

Gold prices returned to negative territory Thursday, one day after ending at a one-month high and despite a Labor Department report showing US inflation increased the most in nearly a year.

Gold for June delivery fell $12.30, or 0.9%, to close at $1,293.60 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal traded from a low of $1,290.90 to a high of $1,307.30.

The Labor Department’s monthly CPI report said consumer prices advanced 0.3% in April, the largest increase since last June, and the annual US inflation rate rose 2%, the biggest gain since July. Also, the core annual inflation rate, which discounts food and energy prices, rose 1.8%, the highest mark since August. Still, the core level remains below the Fed’s 2% inflation target.

"The CPI data, although showing some strength, is still within the parameters of the Fed’s targets and suggests tapering will continue," MarketWatch quoted Peter Hug, global trading director at Kitco Metals Inc. "The inflation scare, when it manifests, will be evident in the long bond rising in yields and the ten year from a high of 3% at the beginning of the year is still struggling, currently at 2.5%, which suggests that the market continues to fear deflation more than inflation."

Gold futures in the previous session gained $11.10, or 0.9%, to settle at their highest price since April 11.

In other precious metals, silver, platinum and palladium snapped a three-session winning streak. In their breakdowns:

  • Silver for July delivery declined 29 cents, or 1.5%, to end at $19.48 an ounce. Silver prices ranged from $19.43 to $19.84.

  • July platinum turned down $15.80, or 1.1%, to $1,469.90 an ounce, trading between $1,466.60 and $1,483.70.

  • Palladium for June delivery tumbled $16.70, or 2%, to $812.10 an ounce, ranging from $811.75 to $827.95.

London Fix Precious Metals

Earlier fixed London precious metals declined as well. In contrasting the London fix bullion prices from Wednesday PM to Thursday PM:

  • Gold shed $6.25, or 0.5%, to $1,299 an ounce,
  • Silver lost 21 cents, or 1.1%, to $19.66 an ounce,
  • Platinum fell $1.50, or 0.1%, to $1,471 an ounce, and
  • Palladium retreated $2, or 0.2%, to $821 an ounce

US Mint Bullion Sales

Sales totals for United States Mint bullion coins were unchanged Thursday. Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of bullion coins sold last week, the week so far, last month, the month so far, and the year-to-date.

American Eagle and Buffalo Bullion Sales (# of coins)
Thursday Sales Sales Last Week Week-To-Date Sales April Sales May Sales YTD Sales
$100 American Platinum Eagle Bullion Coins 0 600 100 1,200 700 11,900
$50 American Eagle Gold Bullion Coins 0 9,500 2,000 26,000 11,500 138,000
$25 American Eagle Gold Bullion Coins 0 0 3,000 5,000 3,000 25,000
$10 American Eagle Gold Bullion Coins 0 0 6,000 20,000 6,000 68,000
$5 American Eagle Gold Bullion Coins 0 10,000 5,000 55,000 20,000 310,000
$50 American Buffalo Gold Bullion Coins 0 1,000 3,500 17,500 6,000 89,000
$1 American Silver Eagle Bullion Coins 0 1,151,500 918,000 3,569,500 3,262,000 20,710,000
Great Smoky Mountains National Park 5 Oz Silver Bullion Coins 0 3,500 0 10,600 3,500 26,500
Shenandoah National Park 5 Oz Silver Bullion Coins 0 15,200 2,000 N/A 17,200 17,200


To see how inflation has changed the buying power of the US dollar over time, use the Inflation Calculator.

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After the u.s.a went off the gold standard they are now printing trillions of dollars a day. they do not have the gold to cover the debts they owe now the dollar is not worth a hell of a lot if the governments we borrowed money from want the cash what do we pay them with ? ships from the navy or part of the united states or maybe new York for a down payment. now we look foreward to another depression nothing like the 30s. possibly worse

Andi Sief

Fiat currency is poison and addictive.
Leverage and greed is poison and addictive.
Refined Sugar is poison and addicitive.
High Fructose Corn Syrup is poison and addictive.
Caffeine, Nicotine and Alcohol are poison and addictive.
Eat the poison, feel the dopamine high and rush. The party is great until it ends. We are ready to supply more and more of the drug to get your fix. We will sell you the poison and pretend to treat the symptoms but we will never cure you. You can cure yourself by not eating the poison.


Well said Andi but what has that got to do with the price of tea (gold) in China?