Daily Gold Update

While investors remain wary of looming global protectionism, upbeat US economic date brought out risk appetite. Consumer confidence remains near an 18-year high despite dipping slightly in June. Home prices continued climbing in April, notching a 6.5% gain over 12 months and making many Americans feel wealthier. The Atlanta Fed sees GDP growing 4.7% in Q2.

Oil surged 3.4% to close above $70 per barrel for the first time since May after reports that the US is pushing countries to cut oil imports from Iran to zero. In addition, legal uncertainty in Libya over oil distribution rights is expected to diminish Libyan output on the market.

The dollar added 0.4% against major rivals, rebounding from a lower start to the week as traders weigh the rate-differential between the Fed and other major central banks. The Fed has said it will raise interest rates twice more this year while the ECB will hold rates firm until 2019. Higher rates boost the dollar by attracting foreign exchange investment seeking higher yield, weighing on gold and other commodities, in turn, by making them more expensive overseas.

The other precious metals were mixed, with silver dropping 0.5% while platinum and palladium added 0.4% and 2.1%, respectively.

AT the Comex close: August gold dropped $9 to $1,259.90; September silver slid 8 cents to $16.33; October platinum rose $3.70 to $874.70; and September platinum jumped $19.30 to $954.70 an ounce.