Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at a three-week low under $1,253 as this week's hawkish turn in the Fed's view on interest rates continued to boost the dollar and weigh on commodities. The metal finished 1.6% lower for the week.

Wednesday's release of the minutes from the April meeting of the FOMC showed a growing predisposition to raise interest rates within the next few months, with "most" members saying a June hike is on the table, data permitting.

That view was reinforced by statements from several regional Fed officials this week, including William Dudley of the New York Fed, John Williams of San Francisco, and Dennis Lockhart of Atlanta, all of whom said the economy is on track for higher rates. As early as June. The CME FedWatch tool, which tracks Fed fund futures, raised the odds of a June hike from 4% on Monday to 30% after the Fed minutes' release.

The dollar rallied for a third week, boosted by the prospect of rising interest rates to reach its highest level in two months against major rivals. A stronger dollar typically pressures most commodities denominated in it for international trade by making them more expensive overseas.

The other precious metals rebounded today but still finished sharply lower for the week. Silver picked up 0.2% for a weekly loss of 3.5%. Platinum jumped 1% today but still lsot 2.7% this week. Palladium edged up 0.1% but finished the week down 5.7%.

At the Comex close: June gold dipped $1.90 to $1,252.90; July silver added 4 cents, to $16.53; July platinum gained $10 to $1,023.30; June palladium picked up 45 cents to $558.90 an ounce.