Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.9% to close just over $1,332 as U.S. stock indexes extended their rallies, cutting into demand for safe havens.

The Dow and S&P 500 pushed deeper into record territory, adding 0.8% and 0.6%, respectively, as strong earnings by big banks and rising oil prices fueled financial and energy shares.

Rising wholesale inflation also boosted sentiment. U.S. producer prices leapt 0.5% higher in June, the biggest rise ion more than a year, behind higher oil and margins for financial companies. Higher wholesale inflation typically signals rising growth.

However, so-called core inflation, stripping out food and energy, remained muted, however, rising just 0.3% last month and 0.9% over the past 12 months.

Two more Fed officials sounded notes of caution about future rate hikes. Kansas City Fed President Esther George warned that rising demand for safe-haven Treasury bonds after Brexit may drive up the dollar and harm U.S. economic growth. Separately, Atlanta Fed President Dennis Lockhart said the Fed should remain "cautious and patient" until Brexit fallout is understood.

In contrast, outlier Patrick Harker of the Philadelphia Fed called Brexit as "low on my list of risks" and said the economy is still on track for perhaps two rate hikes this year.

The other precious metals were mixed. Silver dropped 0.5% while platinum and palladium, more directly tied to industry, rose 0.4% and 1.1%, respectively.

At the Comex close: August gold fell $11.40 to $1,332.20; September silver dropped 9 cents to $20.32; October platinum added $4.40, to $1,104.60; and September palladium gained $6.90 to $651.10 an ounce.