Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold ticked up 0.1% to close just under $1,215 as bargain-hunters stepped in to stop a nine-session slide despite a rising dollar and data supporting the prospect of a rate hike from the Fed. While the metal remains up 15% this year, it surrendered nearly 6% in May as the markets adjusted to the growing likelihood of higher rates within the next few months.

Consumer spending jumped 1% in April, the biggest rise in nearly seven years, behind a sharp increase in purchases of cars and trucks. In addition, the Fed's preferred measure of inflation, the so-called PCE-index, climbed 0.2%. Up 1.6% for 12 months, it remains well-under the Fed's target 2%.

The dollar notched its biggest monthly rise against the yen in 18 months, fueled by the contrast between Japan's lean toward looser monetary policies the Fed's apparent intention to tighten in June or July. Fed Chair Janet Yellen said on Friday faster Q2 growth and an improving job market mean higher rates are likely "in coming months," reinforcing recent statements by regional Fed officials and the April FOMC meeting minutes. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

The other precious metals were mixed on the day and sharply lower for the month. Silver lost 1.7% today and 10.2% this month. Platinum slid 0.2% and 9.1% on the day and month, respectively; and palladium had a monthly loss of 13% despite today's gain of 1.6%.

At the Comex close: June gold added $1, to $1,214.80; July silver lost 28 cents to $15.99; July platinum slipped $1.80 to $980.40; and September palladium gained $8.35 to $547.35 an ounce.