Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained for a second session, rising 0.4% to close above $1,224, as equities and the dollar retreated, boosting demand for alternative assets.

U.S. stock markets traded lower, led by declines in banking and financial shares, as disappointing corporate earnings weighed on sentiment. The Dow was down 0.3% while the S&P 500 slid 0.5%.

The dollar also slipped against major rivals, with the US Dollar Index down around 0.1% despite a solid rise against the UK pound after the Bank of England held interest rates unchanged. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive to users of other currencies.

Gold also received safe-haven bids from political uncertainty as President Trump's abrupt firing of FBI chief James Comey yesterday continued to roil Washington. And rising wholesale prices added to its appeal as an inflation hedge after the Producer Price Index jumped 0.5% in April.

The other precious metals were mostly higher, with silver and platinum rising 0.3% and 0.6%, respectively, while palladium dipped 0.1%.

At the Comex close: June gold gained $5.40 to $1,224.30; July silver added 4 cents, to $16.25; July platinum climbed $5.10 to $915; and June palladium dipped 70 cents to $798.65 an ounce.