Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose to a 14-month high above $1,362 early in the session as downbeat data from China boosted demand for safe-haven buying. The metal then retraced most of those gains to close at $1,344.50, notching a rise of 0.1% as upbeat US economic news lifted the dollar, undercutting demand for alternative stores of value. For the week gold dipped 0.1%.

China's manufacturing fell to a 17-year low in May, signaling that the world's second-largest economy faces increasing headwinds from its escalating trade war with the US. The weak data caused stocks to falter worldwide, pushing the S&P 500 down 0.2% and the Global Dow down 0.4% while driving investors toward safe havens like gold early in the day.

US economic reports were far more promising, however. Retail sales rose 0.5% in May, and the 0.2% contraction initially reported for April was revised into a 0.3% increase. Separately, industrial output rose to a six-month high, helping to ease concerns that the economy is ebbing toward recession.

The dollar jumped 0.6% to two-week high later in the session, prompting traders to take profits from gold's rise after the upbeat US data reduced the likelihood that the Fed will cut interest rates when it meets next week. A rising dollar pressures gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly lower for the day and weak. Silver dropped 0.6% for a weekly decline of 1.5%. Platinum dropped 0.6% for the day and 0.2% for the week. Palladium rose 1.6% for a weekly win of 7.8%.

At the Comex close: August gold added 80 cents to $1,344.50; July silver dropped 9 cents to $14.80; July platinum lost to $4.70 to $804.70; and September palladium gained $23.30 to $1,461.50 an ounce.