AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
5/16/2019: Gold falls on upbeat data, earnings
Source: Bill Musgrave, American Gold Exchange
Austin — Gold fell 0.9% to close just above $1,286 as upbeat US data and strong corporate earnings stimulated risk appetite, dulling demand for alternative assets.
The Philadelphia Fed manufacturing index rose to a four-month high in May after a weak reading in April. Combined with the Empire State index posting a six-month high for April, reported earlier this week, the data raise hopes that industrial production may be rebounding after a slow start to the year.
The crucial housing industry is also showing new signs of life, with construction on new houses rising nearly 6% in April. Falling mortgage rates are bringing more buyers to the market.
All three major US equity indexes rose nearly 1% as the upbeat economic reports combined with strong reported corporate earnings to draw investors back into risk assets.
The dollar rose 0.3% against major rivals, with the UK pound and euro dropping sharply because of renewed Brexit worries. British PM Theresa May puts her beleaguered Brexit plan up for yet another vote in early June, although few analysts believe it will pass. A rising dollar pressures gold and other commodities by making them more expensive in other currencies.
The other precious were also lower, with silver dropping 1.8% while platinum and palladium lost 1.7% and 0.6%, respectively.
At the Comex close: June gold fell $11.60 to $1,286.20; July silver lost 27 cents to $14.55; July platinum dropped $14.10 to $833.60; and June palladium lost $8.20 to $1,324.70 an ounce.
AGE Gold Commentary
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