Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slid 0.8% after Treasury yields rebounded on improving US economic data and slightly hawkish Fed talk, prompting traders to take profits from last weeks 1.4% rise. Silver edged up 0.2% to 29.46 an ounce.

New Yorks Empire State index of business condition rose more than expected in June as new orders climbed by the most in nine months, signaling improvement in a key gauge of manufacturing. But the reading remained in contraction for the ninth month, suggesting conditions are still recovering.

Several Fed officials, present and former, weighed in on the possible course of interest rates. Minneapolis Fed President Neel Kashkari said yesterday that its a reasonable prediction that the central bank will wait until December to cut rates. Philadelphia Fed President Patrick Harker said a single reduction this year is likely, although two cuts, or none are also possible. Charles Evans, the former Chicago Fed president, said a September cut is still possible if the data improve.

Benchmark 10-year Treasury yields rose by the most in a week but remained under 4.3%, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Backsliding golds slide, the dollar fell 0.2% as the euro gained strength following assurances from Marine Le Pen that she will not seek the resignation of French President Emmanuel Macron. Le Pens rightwing National Rally party trounced the ruling centrist party in the European Parliament elections, creating political turmoil in the Eurozone.

Platinum gained 1.3% while palladium fell 1.1%.

At the New York spot close: gold slid $19 to $2,312.40; silver added 2 cents, to 29.45; platinum picked up $12.30 to $970.90; and palladium lost $9.90 to $883.60 an ounce.