Morning Snapshot: Gold retreats modestly after setting 5-week highs

USAGOLD/Peter Grant/05-30-17

Gold hit a 5-week high at 1270.45 in overseas trading, before dipping back into the range. With the fundamentals and technicals still generally supportive, shirt term dips will likely viewed as buying opportunities.

U.S. data out this morning shows that home prices continued to appreciate at a solid pace in March, but broader inflationary pressures are waning. The Case-Shiller home price index for 20-cities gained +1.0% in March, above expectations. Meanwhile, core PCE eased to 1.5% y/y in April; the third consecutive monthly decline.

That is suggestive that the December and March rate hikes may have sapped the upward price pressures that the Fed worked so hard to generate. Prospects for another 25 bps hike in June remains all-but a sure-thing, although the inflation data may weigh on those expectations.

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