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Daily Gold Update
Current precious metals news

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Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


June 24: Gold surges 4.7% to two-year high

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold surged 4.7% to finish above $1,322, its highest close in two years, as Britain's vote to exit the European Union caught investors by surprise and sent global markets into turmoil, turbocharging demand for safe-haven assets.

In a day of furious trading reminiscent of the Lehman Brothers collapse in 2008, the metal jumped nearly $100 in mid-session and notched its biggest one-day gain since September 2013. It finished the week up 2.1%.

Global equity markets lost around $2 trillion in value, with the Dow dropping 3.2% and the Global Dow nearly 5.5%, as uncertainty about the fate of the euro, EU, and global recovery gripped the markets.

Forex markets were also deeply shaken. The UK pound suffered its biggest daily drop ever, falling 8% to a 31-year low against the dollar. The euro and yen plunged 2.3% and 3.2%, respectively, while the ICE Dollar Index rose 2.3% on safe-haven inflows.

Central banks around the world, include the Federal Reserve, have pledged to increase liquidity as needed in order to calm the Brexit storm. Rising liquidity is supportive of higher gold prices because it devalues currencies and builds demand for alternative stores of value.

Many analysts now view the Fed's plans to raise interest rates as indefinitely off the table. Research released today by the Fed show a strong link between long-term rate policies in the U.S. and other developed economies, suggesting that the Fed may be forced to keep rates near zero until growth resumes in the Eurozone, something that the Brexit is likely to delay.

The other precious metals were mixed on the day and higher for the week. Silver rose 2.5% for a weekly gain of 2.2%. Platinum added 2.2% for the day and week. Palladium fell 3.4% today but still gained 3.2% this week.

At the Comex close: August gold surged $59.30 to $1,322.40; July silver jumped 44 cents to $17.79; July platinum picked up $20.80 to $987.10; and September palladium lost $19.45 to $546.45 an ounce.




June 23: Gold slides on Brexit risk-rally

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.5% to close just above $1,263 as growing confidence that Britain will remain in the EU stoked demand for riskier assets.

With final opinion surveys showing 52% of British voters favoring "stay" as they go to the polls today, equity markets surged in hope that global economy may yet be spared the jolt of a fractured European Union. All three major U.S. stock indexes added around 1% while the Global Dow jumped 1.2%.

The UK pound rallied to six-month high and the euro gained 0.5%, mostly at the expense of the yen and the dollar, both of which have received safe-havens inflows in recent weeks as the Brexit vote loomed.

After rallying to a two-year high earlier this month, gold has dropped around 2.7% over the past five sessions as the Brexit risk-premium has started to subside. The metal remains strongly supported by the Fed's increasing caution toward future interest rates, driven by flagging job gains, low inflation, and global economic risk.

The other precious metals were mixed, with silver and palladium adding 0.2% and 0.6%, respectively, while platinum dropped 1.7%.

At the Comex close: August gold slid $6.90 to $1,263.10; July silver added 4 cents, to $17.35; July platinum dropped $17.20 to $966.30; September palladium gained $3.65 to $565.90 an ounce.




June 22: Gold dips ahead of Brexit vote

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.2% to close at $1,270 as traders squared positions ahead of tomorrow's crucial Brexit vote.

Despite current polls showing the context too close to call, the euro and UK pound rallied against the dollar, suggesting forex markets are wagering that the British will decide to remain within the European Union.

Commodities traders seemed not quite so sanguine, with speculators driving gold prices lower for a third day by closing out long positions in gold futures to limit losses, just in case, according to Reuters.

Further pressuring gold, oil prices fell around 2% after the U.S. Energy Information Administration reported domestic crude supplies fell by 900,000 barrels. Gold often trades in tandem with oil as a hedge against energy-inflation.

Existing home sales rose 1.8% to a nine-year high in May. The data had little impact on the markets because the Fed's recent dovish tone, supported by Janet Yellen's Congressional testimony over the past two days, leaves virtually no doubt that the Fed will refrain from hiking interest rates in the near future.

The other precious metals were mixed, with silver edging down 0.1% while platinum and palladium gained 0.2% and 2%, respectively.

At the Comex close: August gold dipped $2.50 to $1,270; July silver edged down a cent to $17.31; July platinum added $2, to $983.50; and September palladium gained $10.90 to $562.25 an ounce.




June 21: Gold falls on rising risk-appetite

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1.5% to close at a two-week low above $1,272 as the dollar rallied and investors turned to riskier assets with the Brexit threat receding.

While still uncertain, sentiment for remaining within the EU appears to be winning out, according to recent surveys taken in advance of the UK vote this Thursday. A British exit from the union would likely destabilize financial markets around the world and damage global growth.

Risk-appetite rebounded for a second day, with the Dow and Global Dow both up around 0.3%. The dollar also rallied, adding 0.3% to pressure gold and other commodities denominated in it for international trade by making them more expensive overseas.

Testifying on monetary policy before Congress today, Fed Chair Janet Yellen reinforced the dovish tone set after last week's FOMC meeting, saying the Fed would be unlikely to raise interest rates until data shows substantial improvements in job creation. She also said a Brexit would darken the outlook for the U.S. economy.

The other precious metals were mostly lower, with silver and platinum dropping 1.1% and 0.6%, respectively, while outlier palladium picked up 0.5%.

At the Comex close: August gold fell $19.60 to $1,272.50; July silver dropped 20 cents to $17.32; July platinum slid $5.70 to $981.50; and September palladium picked up $2.90 to $551.35 an ounce.




June 20: Gold slides as Brexit fears recede

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.2% to close above $1,292 as receding Brexit fears stoked demand for riskier assets and reduced demand for safe havens.

Polls indicate rising British support for remaining within the European Union, with 45% in favor of staying and 42% preferring to exit. Last Thursday, before the killing of MP Jo Cox by a pro-Brexit partisan caused the campaigns to be suspended, sentiment appeared to be leaning the other way. The watershed vote is this Thursday.

Equities jumped on the shift, with the Global Dow adding more than 2% and the Dow around half that much, as anxieties about the Brexit's potential to damage global growth began to subside.

The dollar fell back against major rivals, stemming gold's slide. A weaker dollar typically supports commodities denominated in it for international trade by making them less expensive to users of other currencies.

The other precious metals finished higher, with silver picking up 0.5% while platinum and palladium, more directly tied to industry, rose 2.1% and 3.6%, respectively.

At the Comex close: August gold slipped $2.70 to $1,292.10; July silver added by 8 cents to $17.49; July platinum rose $20.60 to $986.70; and September palladium jumped $18.95 to $548.60 an ounce.




June 17: Gold dips, scores third weekly win

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.3% to close under $1,295, breaking a seven-day winning streak as traders reassessed Brexit risk in light of the tragic death of a British MP. The metal finished 1.5% higher for the week, notching its third straight weekly gain.

Both sides of the Brexit debate suspended their campaigns yesterday in response to the murder of anti-Brexit politician Jo Cox by a gunman who reportedly shouted "Britain first" before shooting.

With the heated contest on temporary hold, the dollar retreated nearly 0.5% against major rivals as safe-haven worries briefly abated. Investors and forex traders have been buying dollars along with government bonds and gold in anticipation of turmoil in the financial markets if Britain votes to exit the EU next week.

Gold received additional support this week from the Fed's dovish outlook on future interest rates. Following the central bank's policy meeting, Fed Chair Janet Yellen advocated a more cautious approach going forward, citing weak business investment and rising global risks.

St. Louis Fed President Louis Bullard today reinforced the Fed's new go-slow sentiment, outlining the case for a single quarter-point hike over the next 30 months. Low rates support gold by pressuring the dollar, which makes gold and other commodities less expensive to users of other currencies.

The other precious metals were lower for the day and mixed for the week. Silver fell 1.1% but still managed a 0.5% weekly gain. Platinum shed 1.1% on the day and 2.8% on the week. Palladium fell 1% for a 3% weekly decline.

At the Comex close: August gold dipped $3.60 to $1,294.80; July silver lost 20 cents to $17.41; July platinum lost $12.20 to $966.10; and September palladium dropped $5.30 to $529.65 an ounce.




June 16: Gold briefly hits 2-year high near $1,319

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.8% to close at a 16-month high above $1,298 after a dovish shift by the Federal Reserve continued to weigh on the dollar, boosting demand for alternative store of value. The metal reached as high as $1,319, a two-year high, before falling back on profit-taking and Brexit confusion.

Meeting this week, the FOMC kept rates unchanged and issued a statement advocating a slower approach to tightening monetary policy in the near future. Expressing concern about weak U.S. business investment and "vulnerabilities in the global economy" during her post-meeting press conference, Fed Chair Janet Yellen effectively pushed the horizon for the next rate hike out until after the summer, saying the Fed's "cautious approach to policy remains appropriate.”

Following Yellen's statement yesterday, gold immediately jumped while the dollar fell. Lower rates weigh on the buck by discouraging forex inflows searching for higher yields; a lower dollar supports gold and other commodities by making them less expensive overseas.

The metal extended those gains today, surging to a two-year high near $1,319 in intraday trading before falling back under $1.300 on news that British MP Jo Cox died from gunshot wounds, prompting the suspension of campaigning around the pending Brexit vote. An anti-Brexit lawmaker, Cox was apparently attacked by a pro-Brexit partisan. Worries over the potential of Britain's exit from the EU to disrupt global financial market have supported safe-haven demand for gold and government bonds.

Outside of sharply higher rents and gasoline prices, consumer inflation was broadly muted in May, further easing pressure on the Fed to raise interest rates. The CPI has risen only 1% over the past 12 months, well-under the Fed's 2% target. In a separate report, U.S. exports fell sharply in the first quarter as the current account deficit reached a seven-year high.

The other precious also finished higher, with silver rising 0.6% while platinum and palladium and 0.4% and 0.5%, respectively.

At the Comex close: August gold gained $10.10 to $1,298.40; July silver rose 10 cents to $17.61; July platinum picked up $3.50 to $978.30; and September added $2.40, to $534.95 an ounce.




June 15: Gold jumps on dovish Yellen comments

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold edged up slightly in regular trade, closing above $1,288 to mark six straight winning sessions. It then jumped as high as $1,300 in electronic trade after the Fed projected a surprisingly dovish outlook for monetary policy.

At the conclusion of its June meeting today, the FOMC left interest rates unchanged, as it was widely expected to do, and cut its growth forecast to 2% for 2016. It also signaled its intention to move even slower with hikes going forward, something that surprised the markets after weeks of hawkish statements from a variety of Fed officials.

In her post-meeting press conference, Janet Yellen expressed concern about weak U.S. business investment and vulnerabilities in the global economy," including the increasingly likely British exit from the EU. As a result, she said “our cautious approach to policy remains appropriate.”

The Fed Chair even reserved as a policy tool the use of so-called "helicopter money," simply printing cash and giving it away if the economy were to need an all-out rescue.

Separately, the Fed released data showing that manufacturing output fell unexpectedly in May, suggesting weaker growth this quarter.

The dollar weakened immediately after the Fed statement, supporting gold and other commodities denominated in it for international trade by making them less expensive overseas.

The other precious metals were mixed on the day. Silver added 0.5% and then doubled that gain after hours. Platinum picked up 0.3% and also doubled it in electronic trade. Outlier palladium slipped 0.6% but rebounded by half after the Fed statement.

At the Comex close: August gold edged up 20 cents to $1,288.30; July silver gained 8 cents to $17.50; July platinum picked up $2.90 to $974.80; and September palladium slid $3.20 to $532.55 an ounce.




June 14: Gold rises again on Brexit fears

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold edged up 0.1% to close above $1,288, notching five straight winning sessions, as growing Brexit fears stoked demand for safe-haven assets.

Equities tumbled again, with the Dow dropping 0.6% and the Global Dow 1.2%, as investors shed risk ahead of next week's British vote on whether to exit the European Union. A Brexit would damage global growth and severely tighten financial markets, according to most analysts.

Government bonds rallied again, with yields on German bunds falling into negative territory and U.S. Treasury yields plunging to new 3.5-year lows.

The dollar rose on safe-haven inflows, in part because Treasury bonds must be purchased in U.S. currency. Its rise was hampered by expectations that the Fed will not raise interest rates at its meeting on monetary policy this week.

The other precious metals, more directly tied to industry than gold, finished lower. Silver dipped 0.1% while platinum and palladium lost 2.4% and 1.9%, respectively.

At the Comex close: August gold edged up $1.20 to $1,288.10; July silver dipped 2 cents to $17.42; July platinum lost by $23.40 to $971.90; and September palladium fell $10.10 to $535.75 an ounce.




June 13: Gold jumps nearly 1% on Brexit jitters

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold jumped 0.9% to close at a four-week high near $1,287 as equities fell on Brexit jitters and the dollar retreated ahead of this week's meeting of the Federal Reserve. The metal has now surged 6% in the past seven sessions.

Anxiety over the British referendum on exiting the EU, scheduled for June 24, is causing risk-off sentiment worldwide, stoking demand for safe haven assets like U.S. Treasury bonds and the Japanese yen as well as gold and silver.

U.S. and global equities fell sharply, with the Dow losing around 0.8% and the Global Dow twice that much. Meanwhile, the CBOE Market Volatility Index, Wall Street's so-called fear index, climbed to the highest level in three months.

At stake in the Brexit are crucial trade agreements, financial regulations, and travel and labor rules, the renegotiation of which would throw damaging uncertainty into already-fragile economies. Roughly 44% of British goods and services go to the EU, comprising 12% of British GDP.

U.S. Treasury bonds rallied alongside gold in flights to safety, pushing yields to the lowest levels in more than three years. Yields for German bunds fell to near-record lows.

The dollar dropped another 0.3% against major rivals, extending last week's selloff as traders recalibrate for the near-certainty that the Fed will refrain from raising interest rates when it meets this week. Along with growing jitters about the possible Brexit fallout, a litany of surprisingly weak U.S. employment data has helped to push the horizon for monetary tightening back until December, according to Fed fund futures trading.

The other precious metals were mostly higher. Silver gained 0.7% and platinum edged up 0.1% while palladium dipped by less than 0.1%.

At the Comex close: August gold gained $11 to $1,286.90; July silver picked up 11 cents to $17.44; July platinum inched up $1.10 to $995.30; and September palladium edged down 10 cents to $545.85 an ounce.




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