Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $1,284 as stocks bounced higher, reducing safe-haven demand despite soft US data and a weaker dollar. But the metal gained 0.6% for the week on rising trade-war tensions.

Global equities bounced higher, with the Dow and Global Dow both adding 0.4%, as concerns about trade eased slightly after President Trump said sanctions against Chinese telecom giant Huwaei may be resolved through a comprehensive trade agreement. The Dow still fell for a fifth straight week, its longest streak of weekly losses in almost eight years.

Order for durable goods plunged 2.1% in April, largely because of falling demand for cars, trucks, and planes. Of more concern, business investment eroded nearly 1%, with the yearly pace dropping to 1.3% from 3.8%, as the trade war with China takes its toll on prospects for US economic growth.

The dollar fell 0.3% from a two-year as traders speculate that the softer data and ongoing trade tensions will prompt the Fed to cut rates later this year. Lower rates would be bullish for gold and other commodities by pressuring the dollar, thereby making them less expensive in other currencies.

The other precious metals were mixed on the day and week. Silver slid 0.4% but held onto a weekly rise of 1.2%. Platinum added 0.4% today but lost 2.1% this week. Palladium gained 1.4% on the day and 1.5$ on the week.

At the Comex close: June gold dipped $1.80 to $1,283.60; July silver dropped 6 cents to $14.56; July platinum added $3.40, to $802.90; and June palladium gained $17.90 to $1,325.70 an ounce.