Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.5% to close near $1,277 as traders took profits from last 0.6% week's rise and strong US consumer confidence boosted the dollar, dulling demand for alternative stores of value.

The Conference Board reported consumer confidence rose to a six-month high in May, with optimism about the robust job market overcoming worries about the escalating trade war with China. A separate survey about consumers' view of the current economy posted its highest reading since 2000.

The dollar rose 0.3% against major rivals, fueled by the upbeat consumer data. Also supporting the buck, US Treasury notes rallied after President Trump, speaking in Japan, said the US and China are far from a trade deal. To buy US Treasurys, foreign investors must first convert into dollars, bidding up the US currency. Because gold is priced in dollars for global trade, it becomes more expensive overseas when the dollar rises, which reduces demand.

The other precious metals were mostly lower, with silver and platinum falling 1.6% and 0.7%, respectively, while palladium added 1.2%.

At the Comex close: June gold fell $6.50 to $1,277.10; July silver dropped 24 cents to $14.32; July platinum slid $5.80 to $797.10; and June palladium rose $13.80 to $1,339.50 an ounce.