Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained nearly 1% to close at $1,331 as the dollar and equities fell on mixed U.S. data and the ECB's decision to hold interest rates and easing unchanged. Silver added 1% to close at $19.82.

Strong U.S. home sales in June and low first-time jobless claims last week underscored momentum in the U.S. economy, raising hopes it may withstand damage from Brexit in coming months.

But manufacturing continues to suffer as the Philadelphia Fed region fell into contraction in July for the ninth month out of the past eleven. The downbeat survey follows a similar July report from the New York Fed region last week. The strong dollar and weak demand overseas create headwinds for U.S. exports, something that may be exacerbated by Brexit fallout in Europe.

U.S. equities declined, with the Dow and S&P 500 both losing 0.5%, and the dollar also fell back after the ECB held interest rates unchanged at its policy meeting this week. The door remains open for future increases in quantitative easing after ECB head Mario Draghi cited "great" uncertainty and risk to the Eurozone outlook.

The other precious metals also climbed, with platinum and palladium adding 1.5% and 1.4%, respectively.

At the Comex close: August gold gained $11.70 to $1,331; September silver rose 20 cents to $19.82; October platinum jumped $16.50 to $1,108; and September palladium added $9.45, to $685.45 an ounce.