Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush - TARGETING 5 MILLION OZ. AT 1+ G/T
Gold prices leapt nearly $60 on Tuesday, reclaiming the $4,000 level and closing in on $4,100 an ounce, after a much larger-than-expected drop in US inflation slashed bets on further Federal Reserve tightening.
The US Bureau of Labor Statistics reported that the Consumer Price Index fell 0.4% in June, far exceeding the consensus forecast of a 0.1% decline and marking the steepest monthly drop since the 0.8% fall in April 2020. The May reading had shown a 0.5% increase. Over the past 12 months, headline CPI rose 3.5%, sharply down from 4.2% in May and below the 3.8% estimate. Core CPI, which excludes food and energy, was flat for the month versus expectations of a 0.2% rise, while the annual core rate eased to 2.6% from 2.9%.
Spot gold jumped to a session high of $4,101.50 before last trading at $4,089.10 an ounce, up 2.22% on the day and testing resistance near the $4,091 area. Spot silver followed suit, advancing 2.78% to $59.12 an ounce in a range of $56.76 to $59.45, and was probing its 50-period moving average.
The soft inflation print undercut the case for near-term rate hikes, pushing the US dollar index lower and pulling the 10-year Treasury yield off its early highs, though it remained around the 4.6% area. The cooling price data also helped offset the inflationary impulse from another spike in oil, after the US and Iran traded strikes near the Strait of Hormuz. Brent crude traded near $86.73 a barrel, while WTI crude was around $80.55. Gold benefited from both the improved rate outlook and safe-haven demand.
Traders are now turning to Fed Chair Kevin Warsh’s congressional testimony, the follow-through in Treasury yields, and any further disruption to Hormuz shipping lanes. On the technical front, a sustained break above the $4,091–$4,107 resistance zone would significantly improve gold’s short-term setup.
