Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.3% to close under $1,274 as record-high stocks and a rising dollar boosted risk appetite, dulling demand for safe-haven assets. It was the metal's lowest finish since late December.

The S&P 500 gained 0.9% to hit a new record as health-care and technology shares led the way. The Nasdaq also rose to a new record, jumping 1.2% on strong earnings and optimism over a potential US-China trade deal.

Also boosting risk appetite, US new-home sales surged to a 16-month high in March, beating expectations, with lower prices prompting buyers to close deals. The upbeat housing data helped to assuage fears about this crucial sector after two subpar reports in recent days painted a deteriorating outlook. Housing starts fell to a two-year low in March while existing-homes sales dropped nearly 5%.

The dollar added 0.3%, with the ICE Dollar Index rising to 22-month high, as safe-haven currencies like the Swiss franc lost favor. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

Gold's drop was backstopped by a third day of sharply higher oil prices. WTI crude added another 1.1% to notch its highest close of the year at more than $66 per barrel after this week's announcement that US waivers for importing Iranian oil will be revoked. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly lower, with silver and platinum dropping 1.2% and 0.9%, respectively, while palladium added 0.4%.

At the Comex close: June gold slid $4.40 to $1,273.20; May silver lost 18 cents to $14.79; July platinum dropped $8.40 to $893.80; and June palladium added $5.80, to $1,375.60 an ounce.