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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 22: Gold slides as dollar rally continues

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.6% to close above $1,323 after weak data from Europe boosted the dollar to a fresh four-month high, reducing demand for alternative stores of value. The metal slipped 0.3% for the week.

Britain's economy has suffered a dramatic downturn since the nation voted in late June to leave the EU. According to Markit's flash PMI, combined services and manufacturing fell to the lowest level since 2009, during the height of the global financial crisis, and suggest a return to recession.

As survey of experts conducted by the ECB concluded that Brexit will also damage the Eurozone economy by cutting exports and generating instability in financial markets.

The dollar rallied by another 0.5% against major rivals, hitting its highest level since March, on growing expectations of policy divergence between the Fed and other major central banks. Weakening growth in the UK, EU, and Japan has them on course for additional monetary easing, whereas upbeat U.S. data point toward a possible rate hike sometime this year. CME FedWatch projects 20% probability of a hike in September and 40% in December.

The other precious metals were mostly lower for the day and week. Silver dropped 0.6% today and 2.4% this week. Platinum fell 1.8% for a weekly loss of 0.6%. Outlier palladium edged up 0.1% for a gain of 6% this week.

At the Comex close: August gold slid $7.60 to $1,323.40; September silver lost nearly 13 cents, to $19.69; October platinum dropped $19.60 to $1,088.40; and September palladium inched up 60 cents to $686.05 an ounce.




July 21: Gold gains nearly 1% as ECB holds rates

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained nearly 1% to close at $1,331 as the dollar and equities fell on mixed U.S. data and the ECB's decision to hold interest rates and easing unchanged. Silver added 1% to close at $19.82.

Strong U.S. home sales in June and low first-time jobless claims last week underscored momentum in the U.S. economy, raising hopes it may withstand damage from Brexit in coming months.

But manufacturing continues to suffer as the Philadelphia Fed region fell into contraction in July for the ninth month out of the past eleven. The downbeat survey follows a similar July report from the New York Fed region last week. The strong dollar and weak demand overseas create headwinds for U.S. exports, something that may be exacerbated by Brexit fallout in Europe.

U.S. equities declined, with the Dow and S&P 500 both losing 0.5%, and the dollar also fell back after the ECB held interest rates unchanged at its policy meeting this week. The door remains open for future increases in quantitative easing after ECB head Mario Draghi cited "great" uncertainty and risk to the Eurozone outlook.

The other precious metals also climbed, with platinum and palladium adding 1.5% and 1.4%, respectively.

At the Comex close: August gold gained $11.70 to $1,331; September silver rose 20 cents to $19.82; October platinum jumped $16.50 to $1,108; and September palladium added $9.45, to $685.45 an ounce.




July 20: Gold falls 1% as stocks, dollar rally

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1% to close at a three-week low under $1,320 as equities and the dollar extended their rallies, eroding demand for alternative assets. Silver dropped 2% to close at $19.61.

The Dow and S&P 500 set new record highs, led by upbeat corporate earnings from bellwether tech and financial firms like Microsoft and Morgan Stanley. The dollar rose to a four-month high against major rivals as likely easing by other central banks contrasts with growing speculation that the Fed may raise interest rates before the year is out.

The Bank of Japan recently indicated that a new, aggressive round of quantitative easing is on the way. The European Central Bank has also suggested that it is leaning toward deeper easing, although no change is expected at the ECB meeting this week.

Meanwhile, improving U.S. data on job-creation, retail spending, and new home construction has raised expectations for a 2016 rate increase, boosting the buck against its weakening global peers.

CME Fedwatch now places the odds of a December hike at 42%, up from less than 20% in late June. Higher rates boost the dollar by drawing forex investment from overseas; a stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers.

The other precious were mixed, with platinum dropping 1.5% while palladium added 0.9%.

At the Comex close: August gold fell $13 to $1,319.30; September silver lost 39 cents to $19.613; October platinum slid $16.40 to $1,082.20; and September palladium rose $6.15 to $662.55 an ounce.




July 19: Gold nears one-week high as stocks slip

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold edged higher by 0.2% to close above $1,332, nearly a one-week high, as faltering stocks spurred safe-haven demand.

Global equities pulled back as a result of weak earnings reports news that the IMF cut its outlook for world growth for the fifth time in 15 months, citing uncertainty over the ramifications of Brexit. The Global Dow lost 0.5% and the S&P 500 slipped by 0.2% after hitting record highs earlier in the session.

Gold's gains were capped by a stronger dollar, which jumped by 0.5% to a four-month high after new home starts jumped nearly 5% in June. A rising dollar typically pressures gold and other commodities by making them more expensive overseas.

Combined with June's improvements in job growth and retail spending, the upbeat construction data has increased speculation that the Fed may raise interest rates sooner than expected. CME Fedwatch calculates nearly 20% probability of a hike in November, up from less than 15% yesterday, and nearly 40% in December. However, all the data thus far has been pre-Brexit, and Fed members have stressed the need to gauge Brexit fallout fully before tightening monetary policy.

The other precious metals were mixed, with silver and platinum both sliding 0.3% while palladium jumped 1.6%.

At the Comex close: August gold gained $3 to $1,332.30; September silver dropped 7 cents or to $20.01; October platinum slid $3 to $1,098.60; and September palladium climbed $10.35 to $656.40 an ounce.




July 18: Gold adds 0.1% as risk, safety compete

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold added 0.1% to close above $1,329 as traders waffled between desire for risk assets and safe havens.

The failed Turkish coup late last week added new jitters to markets already anxious about Brexit fallout, global terrorism, and the uncertainty surrounding U.S. presidential politics. While most analysts see it as an isolated incident, the violence in Turkey comes after random bloodshed in France and police-shootings in the U.S. have put many on edge.

Stronger recent economic data, including solid payroll gains and improving industrial output in the U.S., and positive growth reports out of China, helped propel the Dow and S&P 500 to record highs last week. Both indexes add slightly to those gains today, picking up 0.1% and 0.2%, respectively.

The edged lower against major rivals, with the Ice Dollar index slipping 0.1% as currency markets called down after the relative order was restored in Turkey. Oil prices fell by 1% on reports of rising U.S. stockpiles.

The other precious metals were mixed, with silver and palladium dropping 0.5% and 0.2%, respectively, while platinum gained 0.7%.

At the Comex close: August gold added $1.90, to $1,329.30; September silver slid 9 cents to $20.08; October platinum rose $7.20 to $1,101.60; and September palladium slipped $1.35 to $646.05 an ounce.




July 15: Gold slides 0.4% on upbeat data

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.4% to close above $1,327 as net-positive data lessened demand for safe havens. The metal finished the week 2.3% lower, suffering its first down week since late May. Silver dropped 0.8% today but still managed a weekly rise of 0.3%.

China's economy grew in the second quarter, boosted by massive government spending on infrastructure. The BOE's decision yesterday to hold rates unchanged signaled some confidence in the UK's ability to negotiate its divorce from Europe.

Closer to home, U.S. industrial output surged by the most in 11 months in June, driven by strong auto production. And retail sales rose 0.6% on booming home-and-garden sales and web purchases.

Not all data was positive, though. The bellwether Empire state index softened in July, in what analysts believe could be a sign of coming Brexit fallout for manufacturing. And consumer sentiment dropped to a three-month low, according to the University of Michigan, on Brexit worries.

Consumer inflation ticked up 0.2% in June but remains historically low, with the CPI measuring merely 1% higher over the last 12 months, far below the Fed's target 2%. And real wages fell by 0.2%, the second drop in three months.

The dollar rallied by 0.5%, aided by the net-positive U.S. data and severely weakened yen. The Japanese currency had its worst week against the dollar since 1999 because of expectations that the Bank of Japan will undertake a massive new program of quantitative easing. A stronger dollar tends to pressure gold and other commodities denominated in it for international trade by making them more expensive overseas.

Platinum fell 0.9% today and 0.6% this week. Palladium dipped 0.6% but gained 4.9% this week.

At the Comex close: August gold slid $4.80 to $1,327.40; September silver dropped 16 cents to $20.17; October platinum fell $10.20 to $1,094.40; and September palladium dipped $3.70 to $647.40 an ounce.




July 14: Gold falls 0.9% as stocks rally on

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 0.9% to close just over $1,332 as U.S. stock indexes extended their rallies, cutting into demand for safe havens.

The Dow and S&P 500 pushed deeper into record territory, adding 0.8% and 0.6%, respectively, as strong earnings by big banks and rising oil prices fueled financial and energy shares.

Rising wholesale inflation also boosted sentiment. U.S. producer prices leapt 0.5% higher in June, the biggest rise ion more than a year, behind higher oil and margins for financial companies. Higher wholesale inflation typically signals rising growth.

However, so-called core inflation, stripping out food and energy, remained muted, however, rising just 0.3% last month and 0.9% over the past 12 months.

Two more Fed officials sounded notes of caution about future rate hikes. Kansas City Fed President Esther George warned that rising demand for safe-haven Treasury bonds after Brexit may drive up the dollar and harm U.S. economic growth. Separately, Atlanta Fed President Dennis Lockhart said the Fed should remain "cautious and patient" until Brexit fallout is understood.

In contrast, outlier Patrick Harker of the Philadelphia Fed called Brexit as "low on my list of risks" and said the economy is still on track for perhaps two rate hikes this year.

The other precious metals were mixed. Silver dropped 0.5% while platinum and palladium, more directly tied to industry, rose 0.4% and 1.1%, respectively.

At the Comex close: August gold fell $11.40 to $1,332.20; September silver dropped 9 cents to $20.32; October platinum added $4.40, to $1,104.60; and September palladium gained $6.90 to $651.10 an ounce.




July 13: Gold recoups 0.6% on softer data

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold recouped 0.6% after a four-session slide, closing near $1,343 as a soft Fed Beige Book weakened the dollar and boosted demand for alternative assets. Silver jumped 1.2% to $20.41, its highest close in two years.

The anecdotal monthly survey of economic conditions in the twelve Fed regions, known as the Beige Book, showed "signs of softening" in consumer spending in June. Wage pressures were "modest to moderate" in most districts, suggesting inflationary pressure remains well under the Fed's target 2%.

With consumer spending comprising more than 70% of GDP, its slowing raises questions about the overall health of the economy entering the third and fourth quarters. Following yesterday's weak data on wholesale inventories for May, the Atlanta Fed cut its GDP forecast to 2.3% for the second quarter.

The dollar rolled back on the weaker data and traders speculated that the Fed will be even less inclined to raise interest rates soon. Dallas Fed President Robert Kaplan said today that since boosting growth is the most important issue facing the Fed, a "slow, gradual, careful" approach to future rate hikes is needed.

Gold and silver were was further supported by the expected return of quantitate easing to the UK. To soften Brexit fallout, the BOE is planning to revive the huge bond-buying program it last deployed in 2009 after the global financial crisis. Tantamount to printing money, QE floods the economy with cheap liquidity, boosting demand for alternative stores of value like gold and silver.

The other precious metals, platinum and palladium, gained 0.2% and 2.4%, respectively.

At the Comex close: August gold recouped $8.30 to $1,343.60; September silver jumped 24 cents to $20.41; October platinum picked up $2.30 to $1,100.20; and September palladium rose $15.25 to $644.20 an ounce.




July 12: Gold falls as equities reach new records

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1.5% to close at $1,336 as expectations of additional easing overseas stoked risk appetite and reduced safe-haven demand. Silver dipped 0.2% to $20.26, buoyed by rising industrial demand.

Noting that the UK economic outlook has weakened after Brexit, Bank of England chief Mark Carney today signaled that additional monetary stimulus is likely when the BOE meets later this week. Analysts expect the first rate cut in seven years, with possibly more measures to follow.

Former Fed President ben Bernanke met with Japanese Prime Minister Shinzo Abe to discuss ways to combat Japan's persistent deflation. Bernanke reportedly advocated addition stimulus, leading to speculation that more aggressive quantitative easing will be forthcoming.

The prospect of additional global stimulus helped to fuel equity markets, pushing the Dow and S&P 500 to new record highs. U.S. Treasury yields jumped by the most in eight weeks on the heightened risk appetite and oil prices jumped 4.6% to a one-week high.

Platinum lost 0.9% while palladium dropped 0.5%.

At the Comex close: August gold fell $20.60 to $1,336; September silver slipped 4 cents to $20.26; October platinum dropped $10.20 to $1,097.90; and September palladium $3.20, to $628.95 an ounce.




July 11: Gold inches lower on risk appetite

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold inched down 0.1% to close near $1,356 as stocks and the dollar gained, cutting into demand for safe-haven assets.

U.S. equities enjoyed a modest rally, with the Dow adding 0.6% and the S&P 500 hitting a record high after picking up 0.5%. Helping to stoke risk appetite was Friday's stellar nonfarm payrolls report showing 287,000 jobs added in June, the most in eight months.

The Global Dow rallied 1.2% after Japanese Prime Minister Shinzo Abe ordered a new round of fiscal stimulus to offset weak demand in the corporate sector. European stocks perked up after Andrea Leadsom dropped out of the race for UK Prime Minister, leaving Home Secretary Theresa May as David Cameron's likely successor and ending weeks of uncertainty.

The dollar edged higher, adding 0.2% against major rivals. A stronger dollar pressures gold by making it more expensive overseas.

The other precious metals finished higher, helped by demand for industrial applications. Silver gained 1% while platinum and palladium picked up 0.7% and 1.4%, respectively.

At the Comex close: August gold inched down $1.80 to $1,356.60; September silver gained 21 cents to $20.30; October platinum added $7.90, to $1,108.10; and September palladium climbed $8.65 to $625.75 an ounce.




July 8: Gold dips, gains for 6th week

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.3% to hold above $1,358 after strong U.S. jobs data boosted risk appetite and tempered demand for safe havens. The metal nonetheless gained 1.5% for the week, notching its sixth consecutive weekly win. Silver rose to $20.10, gaining 1.5% on the day and 2.6% on the week.

Nonfarm payrolls added 287,000 jobs in June, far more than forecast and the most since last October, the Labor Department reported today. May's anemic total of 38,000 was revised sharply lower, however, to merely 11,000 new jobs added, and the unemployment rate ticked up to 4.9% as more jobseekers entered the market.

While the jobs report was a welcome sign of recovery in the labor market, it is unlikely to move the Fed toward a rate hike. The data was collected before the Brexit vote, which has damaged prospects for global growth, and wages remain low, with hourly earnings rising only two cents. CME FedWatch sees a 29% chance of a rate increase by December.

The dollar barely budged, adding just 0.1% against major rivals, while equities rallied on the data. The S&P 500 approached a record high before slipping back for a gain of 1.6%. The Dow gained 1.4% and the Global Dow 1.2%. Treasury yields hit fresh lows despite the strong jobs report.

Bank of America Merrill Lynch reported today that demand for gold has reached an all-time high according to fund inflows. In the week ended on Wednesday, $4.1 billion flooded into precious metals funds, the most on record, as investors sought refuge from Brexit fallout and near-zero or negative interest rate polices. Precious metals funds have gained investment in 24 of the past 26 weeks, according to BOAML.

The other metals finished higher for the day and week. Platinum added 0.5% for a weekly gain of 4.1%. Palladium rose 0.8% today and 1.9% this week.

At the Comex close: August gold dipped $3.70 to $1,358.40; September silver gained 26 cents to $20.10; October platinum picked up $5.10 to $1,100.20; and September palladium added $7.75, to $617.10 an ounce.




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