Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2%, closing just above $1,272 after trading in positive territory for most of the session, as the dollar extended its rally to a third day on positive U.S. unemployment data and hawkish comments on rate policy from another Fed official.

The number of Americans collecting unemployment benefits fell last week to the lowest level in nearly 16 years, suggesting the trend in labor markets is improving despite a decrease in job-creation in recent months. Tomorrow's release of the nonfarm payrolls report for April will give a better sense of employment health.

St. Louis Fed President James Bullard said today that the global headwinds preventing the central banks from tightening monetary policy have begun to abate, putting a June rate increase back on the table, data permitting. Bullard's comments come one day after a similar statement by Dennis Lockhart of the Atlanta Fed.

The dollar gained 0.6% against major rivals, supported by upbeat employment data and jawboning from Fed officials. A stronger dollar often weighs on gold and other commodities denominated in it for international trade by making them less expensive to foreign buyers.

The other precious metals finished higher for the session, with silver adding 0.2% while platinum and palladium picked up 0.8% and 0.7%, respectively.

At the Comex close: June gold dipped $2.10 to $1,272.30; July silver added 3 cents, to $17.33; July platinum gained $8.20 to $1,063.80; and June palladium rose $4.25 to $600.70 an ounce.