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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.


July 1: Gold dips 0.2% on ADP, ISM data

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.2% to close at a four-week low above $1,169 as stronger U.S. jobs and factory data boosted the dollar, reducing demand for alternative stores of value.

Private employers added 237,000 jobs in June, the most in six months and well above consensus forecasts of around 220,000, according to ADP, with most gains coming in the services sector and among small businesses. The solid report raises hopes that tomorrow's U.S. non-farm payrolls data, considered the more authoritative measure, will show similarly healthy job growth.

The ISM reported today that manufacturing growth in June hit the fastest rate since January, and factories plan the increase hiring. However, Markit's new PMI report, also released today, says manufacturing growth eased last month to its slowest in more than 18 months, with the reduction stemming from smaller exports and the strong dollar.

The generally upbeat data helped the dollar rise by around 0.8% against a basket of rivals as traders speculated that faster growth in the second quarter will prompt the Fed to raise interest rates as early as September.

Greece failed to make its schedule debt payment to the IMF, falling technically into "arrears" but essentially into default. Last minute negotiations ended last night after the so-called troika of creditors—IMF, ECB, EC—rejected Greece's final proposal. PM Alexis Tsipras is now exhorting Greeks to vote against the troika's bailout offer in the emergency referendum on July 5.

The gold price received little boost from the demise of talks with Greece, largely because the news was already priced in, but also because the dollar received its own safe-haven bids as traders shifted from euros. A stronger dollar weighs on gold and other commodities by making them more expensive to foreign buyers.

The other precious metals were mixed, with silver slipping less than 0.1% while platinum gained 0.8%. Palladium was the big winner, jumping 4.2% in an overdue correction after falling 13% in June. Widely used in auto manufacturing, palladium is perhaps the most industrial of the precious metals and most likely to respond to rising economic growth.

At the Comex close: August gold dipped $2.50 to $1,169.30; September slipped less than a penny to $15.58; October platinum rose $8.30 to $1,087.80; and September palladium surged $28.55 to $701.20 an ounce.




June 30: Gold slides on rate view, dollar

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.6% to close under $1,172 as rising U.S. consumer confidence boosted speculation about a September interest rate hike, reducing the demand for alternative assets. Gold closed out the first half of the year down around 1%.

Consumer confidence jumped in June, according to the Conference Board, as U.S. households grow increasingly optimistic about the labor market. Following upbeat recent data on employment, consumer spending, and housing, the new report shows the economy rebounding the first quarter's dismal contraction of 0.2% in GDP.

The dollar rallied on the improving economic signs, gaining 0.5% against a basket of rivals as traders foresee the first rate rise from the Fed as likely in September. A strong dollar weighs on gold and other precious metals denominated in it for international trade by making them more expensive to users of other currencies.

Gold's slide was limited by safe-haven demand following reports that German PM Angela Merkel has rejected further negotiations with Greece until after the referendum on July 6, when Greek voters will decide whether to accept deeper austerity measures in exchange for additional bailout funds. Without new aid, Greece is likely default on its loans and exit the euro, triggering economic turmoil at home and throughout the region.

Purchases of physical gold, especially gold coins, has surged in recent days as investors in Europe and the U.S. seek safety from Eurozone turmoil. The British Royal Mint said demand from Greece doubled the five-month average last weekend after capital controls were place on Greek banks. The U.S. Mint reports sales of Gold Eagles hit the highest level since January this month.

The other precious metals were mostly lower on the day, and all closed the first half of the year with losses. Silver dropped 0.7% today and 0.1% this year. Platinum slipped 0.3% for a 10.8% loss year-to-date. Palladium added 0.9% today but still lost 15.8% this year.

At the Comex close: August gold slid $7.20 to $1,171.80; September silver dropped 11 cents to $15.581; October platinum slipped $2.80 to $1,079.50; and September palladium gained $6.20 to $672.65 an ounce.




June 29: Gold gains 0.5% after Greek banks close

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.5% to close at a one-week high of $1,179 on safe-haven inflows as Greece slides closer to insolvency, panic, and possible expulsion from the Eurozone.

Following last week's breakdown in negotiations between Greece and its international creditors, the ECB capped emergency funding for faltering Greek banks on Sunday, throwing the nation's banking system into turmoil. To prevent panicked capital flight, Greece responded by closing its banks until July 6, one day after the emergency referendum to determine whether to accept the additional austerity measures demanded by the IMF, ECB, and EU in exchange for new bailout funds. A "no" vote would almost certainly mean abandoning the euro.

The growing threat of financial contagion from a Greek default is causing global risk aversion, with European stocks suffering their biggest one-day drop since 2011. The Dow and S&P 500 dropped around 2%. Treasury prices spiked higher alongside gold on flights to safety.

The other precious metals were mixed on the day, with silver and palladium falling 0.5% and 1.8%, respectively, while platinum added 0.2%.

At the Comex close: August gold gained $5.80 to $1,179 an ounce on the Comex — its highest settlement since June 22. Prices tacked on 0.1% on Friday, after posting losses for five sessions in a row.




June 26: Precious metals range bound

Source: Dana Samuelson, American Gold Exchange

Austin, TX -- Despite increased volatility overnight and into this morning, precious metals closed the New York session today little changed from yesterday’s New York close. Gold traded as low as $1,167 in early New York trading but rebounded quickly back over $1,170. Silver fell sharply in early London trading to as low as $15.48, but it rebounded as well to as high as $15.90 before settling back into range bound trading in New York. Palladium set a new short-term low of $668.50 this morning before rebounding back over $680. Meanwhile platinum remained in a rather tight range between $1,070 and $1,085 per ounce.

Overnight in Asia the Shanghai composite index, China’s largest market, plunged 7.4% as profit taking continued. In the last 12-months the index has more than doubled from under 2,100 to as high as 5,178 on June 12th. Since China’s central bank introduced a series of stimulus measures last November, investors have flooded into the market, but the 60% rally is now bordering on a 20% bear market correction. Today’s plunge follows a 13% drop last week. Morgan Stanly may have contributed to today’s sharp decline, advising investors in a report just before the Asian market opened “not to buy the dip.”

In the U.S. consumer sentiment rose in June to its highest level since January according to the monthly University of Michigan survey of consumers. Chief economist Richard Curtin reported, “Consumers voiced in the first half of 2015 the largest and most sustained increase in economic optimism since 2004. Overall, the data indicate growth in consumer spending of 3% in 2015.” Rising property values, improvements in the labor market and wage growth are factors cited in this improvement in consumer sentiment.

At the Comex close: August gold gained $1.40 to $1,172.90; July silver fell 7 cents lower to $15.74; July platinum was unchanged at $1,084.40; and September palladium fell 75 cents to $678.60 an ounce.


June 25: Gold sideways, all eyes on Greece

Source: Dana Samuelson, American Gold Exchange

Austin, TX -- Major markets around the world traded sideways Thursday, little changed from Wednesday, as the financial eyes of the world continued to be fixed on the unresolved and almost round the clock Greek debt negotiations in Brussels. Gold traded in a tight $5 range overnight and into Thursday, closing the New York session at $1,171.80 down $1.10.

Despite recent weakness gold and silver continue to hold support at $1,170 and $15.70 respectively. Palladium, however, broke through support at $690 in London, trading as low as $670 early in the New York session before rebounding to just under $680. Platinum, trading at its biggest discount to gold in almost three years, rebounded further from Monday’s cyclical low of $1,058 to as high as $1,085 in the New York session.

The U.S. government reported Thursday that consumer spending surged a seasonally adjusted 0.9% in May, the biggest gain since 2009. Improving labor conditions in the U.S. were cited as the reason for the increase, with personal income rising 0.5% for the second straight month. Consumers seem to increasingly be loosening their grip on their hard earned savings. The U.S. personal savings rate, which has been above 5% since last December and peaked at a two-year high of 5.7% in February declined again this month, from 5.4% in April to 5.1% in May, as consumers spent some of their savings on bigger ticket items like cars and trucks.

Contrarily, the Markit Flash Composite PMI fell from 56.0 in May to 54.6 in June, indicating that while the U.S. economy continues to expand, the rate of expansion is cooling. Readings above 50 indicate economic growth, while readings below 50 indicate economic contraction. June was the third month in a row the composite PMI declined since peaking at a seven-month high of 59.2 in March. While the Atlanta Fed GDPNow forecast is anticipating 2.1% GDP growth (seasonally adjusted annual rate) in the 2nd quarter, the slowing of economic momentum the last three months is leading some economists to question whether the U.S. can continue to sustain this rate of economic growth into the 3rd quarter of 2015.

At the Comex close: August gold slipped $1.10 to $1,171.80; July silver edged 4 cents lower to $15.81; July platinum gained $11.30, to $1,084.40; and September palladium plunged $16.35 to $679.35 an ounce.


June 24: Gold slips 0.3% on rate speculation

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.3% to close under $1,173 after first-quarter U.S. GDP was revised slightly higher, boosting speculation that the Fed may raise interest rates in September, reducing demand for alternative stores of value.

The Commerce Department now says the economy shrank in the first quarter by 0.2%, slightly less than the 0.7% contraction it reported last month. The upward revision is due to stronger consumer spending, inventory accumulation, and business investment than the government previously estimated.

With stronger growth widely anticipated in the second quarter, traders are weighing the odds that the Fed will start raising interest rates in September. Yesterday, Fed Governor Jerome Powell put the likelihood at 50-50, and said two small hike could happen before year end if the economy strengthens enough. However, San Francisco Fed President John Williams said a few days ago that inflation remains too weak to raise rates.

U.S. and global equities retreated as talks stalled on Greek debt deal after EU finance ministers demanded changes to the reform package offered yesterday. The Tsipras government is already facing considerable opposition at home over proposed tax increases and pension reductions.

The other precious metals were mixed, with silver and platinum rising 0.7% and 0.6%, respectively, while palladium edged down less than 0.1%.

At the Comex close: August gold slipped $3.70 to $1,172.90; July silver gained 11 cents to $15.85; July platinum added $6.60, to $1,074.10; and September palladium dipped 5 cents to $695.70 an ounce.




June 23: Gold drops to 2-week low on data, Greece

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dropped 0.6% to close at a two-week low under $1,177 as generally upbeat U.S. economic data and hopes for a deal between Greece and its creditors reduced demand for alternative assets.

New home sales rose last month to the highest level in seven years, boosting expectations that the important housing market will gather momentum in the second half of the year. The strong data comes one day after reports that existing home sales rose by the most since 2009 in May.

Orders for durable goods fell last 1.8% last month, slightly more than forecast, dragged down by slower demand for commercial aircraft. However, shipments of core capital goods, considered a proxy for business investment, rose by 0.3%.

The dollar rallied on the generally upbeat data as traders weighed the possibility that U.S. monetary policy will tighten this year as much of the rest of the world continues to ease. Fed Governor Jerome Powell added fuel to the speculation by putting the odds of September rate hike at 50-50. Higher interest rates strengthen the dollar, weighing on gold and other commodities denominated in the currency for international trade

European stocks rallied as Greece inches closer to an updated bailout deal. Eurozone finance ministers will meet for the third time this week to consider a new proposal from Greek PM Alexis Tsipras offering to raise taxes and cut pensions in exchange for the funds needed to prevent default.

The other precious metals were mixed, with silver falling 2.5% to a two-month low. Platinum picked up 0.7. Palladium finished nearly flat.

At the Comex close: August gold dropped $7.50 to $1,176.60; July silver fell 40 cents to $15.74; July platinum picked up $6.90 to $1,067.50; September palladium inched up 30 cents to $695.75 an ounce.




June 22: Gold falls on renewed Greek optimism

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1.5% to $1,184 as rising optimism about a Greek debt deal boosted risk appetite and reduced demand for safe-haven assets.

Greece offered its creditors a new package of reforms at a meeting in Brussels today, including concessions on pensions, leading EU officials to believe an agreement may be possible after all. If the numbers add up, the IMF and ECB may release the funding needed by the nearly-broke nation to avoid default and potential expulsion from the Eurozone. Eurogroup President Jeroen Dijsselbloem said a deal could reached later in this week.

Hope for the Greek deal stoked risk appetite, rallying the Global Dow by more than 1.4%. U.S. equities also rose, with the Dow and S&P 500 adding around 0.7%, on strong housing data. Sales of existing homes surged more than 5% in May, the biggest gain since late 2009. U.S. Treasury bonds fell and the dollar gained, pressuring gold and other commodities denominated in the currency for international trade by making them more expensive to foreign buyers.

The other precious metals were mixed on the day, with platinum and palladium dropping 2.2% and 1.8%, respectively, while outlier silver edged up 0.2%.

At the Comex close: August gold fell $18.20 to $1,184; July silver added 4 cents to $16.15; July platinum dropped $24.80 to $1,062; and September palladium shed $10.80 to $696.60 an ounce.




June 19: Gold up 1.9% on week, holds $1,200

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 10 cents to close at $1,201.90, holding virtually all of yesterday's 2.1% surge as concerns about Greece offset a stronger dollar to reinforce demand for safe havens.

With their country edging closer to default, Greeks pulled 1.2 billion euros from banks today and 4.2 billion this week, worried that the banking system could collapse. While the ECB raised the limit on Emergency Liquidity Assistance to keep the banks afloat, depositor panic took hold nonetheless after an ECB official said yesterday that Greece's banks might not open next week.

The dollar strengthened and U.S. Treasury bonds rallied alongside gold on flights to safe. U.S. equities fell back on risk-aversion, with the Dow and S&P 500 surrendering around 0.5%.

Gold finished the week 1.9% higher for its second straight weekly rise, boosted by this week's FOMC policy statement indicating that interest rates may rise later and more slowly than previously thought. Low rates benefit gold and other commodities by holding down the dollar, making them less expensive to international buyers.

The other precious metals were mixed on the day and week. Silver slipped 0.3% but still gained 1.8% this week. Platinum added 0.4% but lost 0.9% on the week. Palladium fell 1.6% today and 4% this week.

At the Comex close: August gold dipped 10 cents to $1,201.90; July silver slid 4 cents to $16.11; July platinum added $4, to $1,086.80; and September palladium dropped $11.25 to 707.40 an ounce.




June 18: Gold surges 2.1% on rate view, Greece

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold surged 2.1% to close at a four-week high of $1,202 as the dollar weakened again following yesterday's dovish statements from the Fed, boosting demand for alternative assets. It was gold's biggest one-session rise since mid-May.

Based on statements from the FOMC following this week's policy meeting, analysts are increasingly convinced that the Fed will refrain from raising interest rates until late this year, probably December. Futures traders put the probability of a December hike at 66%.

In her post-meeting press-conference, Yellen said the first hike will come only after the committee sees "further improvement in the labor market" and evidence that "inflation will move back to its 2% objective over the medium term." Furthermore, Yellen warned, rates will remain low for a long time after the initial increases.

The Consumer Price Index rose 0.4% in May, the most in two years, on a surge in gasoline prices. However, the so-called core CPI, stripping out volatile food and energy costs, rose by merely 0.1%, its smallest increase since December. Core CPI is more important in the Fed's calculus for timing the first rate hike.

Gold found additional safe-haven demand from a further deterioration in Greece's prospects of avoiding default. EU finance ministers called for an emergency summit after this week's meeting ended with no agreement. Greece must agree to rigid austerity measures in order to qualify for additional bailout aid, without which it cannot pay its debts and may be forced from the Eurozone. An ECB official said today that Greek banks may be forced to close as early as next week.

The other precious metals were mostly higher, with silver and platinum rising 1.3% and 0.9%, respectively, while outlier palladium dipped 0.2%.

At the Comex close: August gold surged$25.20 to $1,202; July silver gained 21 cents to $16.15; July platinum rose $10.10 to $1,082.80; and September palladium dipped $1.70 to $718.65 an ounce.




June 17: Gold rallies after Fed statement

Source: Bill Musgrave, American Gold Exchange

Austin -- After falling 0.3% to close the regular session at $1,178, gold rallied strongly to $1,188 in electronic trade following the Fed's suggestion that the pace of interest rate increases may be slower than previously thought.

In its post-meeting policy statement, the FOMC said today that while the economy "has been expanding moderately" since the April and the labor markets are showing signs of improvement, business investment and exports are weak and inflation remains "below the Committee’s longer-run objective."

In her press conference after the release, Fed Chair Janet Yellen refused to be pinned down to a date for the first hike, saying that the decision will be data-dependent and not "mechanical." She added, though, that rates will remain low even after employment and inflation have returned to "normal" levels.

While few analysts expected a rate increase at this meeting, many believed the Fed would send signals about the first one coming in September. Today's statement gave no indications of settled timing, however, saying instead that the first hike will come only after "further improvement in the labor market" and evidence that "inflation will move back to its 2% objective over the medium term."

Futures traders continue to see no hikes until the end of the year, with 66% betting on December, according to CME FedWatch, and 49% on October. Rising rates are expected to pressure equity and commodity markets by decreasing liquidity and increasing the relative strength of the dollar.

U.S. and global equities picked up after the Fed statement, with the Dow and Global Dow both rising around 0.4%. The dollar fell back, supporting gold and other commodities denominated in it for international trade. Treasury yields plummeted on expectations that rates will rise more slowly.

The other precious metals were mixed on the day and mostly higher after the policy statement. Silver added 0.2% and then jumped another 1% after hours. Platinum dropped 0.5% before rebounding to a slight gain after the Fed release. Palladium held with a loss on 0.3%.

At the Comex close: August gold slipped $2.90 to $1,178; July silver added 3 cents to $15.99; July platinum dropped $4.90 to $1,074.90; and September palladium lost $2.40 to $730.40 an ounce.




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