Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold tumbled 0.8% to close below $1,247 after a single, massive sell-order triggered automatic stop-loss sales, breaking gold's three-session winning streak

A single gold sale of 1.85 million ounces on Comex created a technical sell-off as algorithmic stop-loss orders were automatically tripped, accelerating losses. The massive sell-order was widely viewed as a mistake�a so-called "fat finger" trade in which someone simply pressed the wrong button.

Beyond this technical pressure, economic data generally supported higher gold prices today.

Orders for durable goods plunged 1.1% in May, the most in six months, as business investment waned. In a separate report, the Chicago Fed's national economic index fell into negative territory in May, dragged lower by weakness in manufacturing, employment, and housing.

Oil gained for a third day, rising 1% on forecasts of another weekly decline in U.S. crude supplies. Rising oil typically supports demand for gold as a hedge against energy-related inflation.

The other precious metals were mostly lower, with silver and platinum dropping 0.5% and 1.4%, respectively, while palladium picked up 0.9%.

AT the Comex close: August gold dropped $10 to $1,246.40; September silver lost 8 cents, to $16.63; October platinum fell $13.30 to $918.20; and September platinum picked up $7.30, to $ 863.95 an ounce.