Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to close under $1,764 as upbeat US economic data and downbeat Covid reports out of Europe and Asia lifted the dollar, pressuring alternative stores of value.

Consumer confidence jumped in June to the highest level since the pandemic began as widespread vaccinations and looser of restrictions stoked optimism about the economy. Including a revised reading for May, the Conference Board's confidence index has now risen for six straight months.

Adding to the wealth-effect for homeowners, home prices rose in April at the fastest pace of record, according to the Case-Shiller index, marking a 14.6% increase over the past 12 months. The combination of ultralow interest rates and little available inventory are the main drivers behind the price growth.

All three main US stock indexes rose on the upbeat data, with the S&P 500 and Nasdaq both touching new all-time highs. Treasury yields also rose as traders shifted from safety towards risk. Higher yields are a headwind for gold because they increase the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked 0.2% higher as rising worries about the deadly Delta variant of Covid swept through Asia and Europe, pressuring other currencies. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

Anticipation that Friday's release of the federal nonfarm payrolls report will show a strong labor market also lifted the buck. If the print exceeds forecasts of around 700,000, traders speculate, the Fed will come under additional pressure to raise interest sooner than expected.

The other precious metals were also lower, with silver losing 1.3% while platinum and palladium dropped 2.6% and 0.7%, respectively.

At the Comex close: August gold slid $17.10 to $1,763.60; September silver lost 35 cents to $25.90; October platinum shed $28.90 to $1,070.60; and September palladium dropped $18.20 to $2,681.20 an ounce.