Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Notching its sixth straight winning session, gold added another 0.1% to close near $1,323 on safe-haven inflows after revisions showed that the U.S. economy contracted even more steeply in the first quarter than previously thought.

Battered by a severe winter, GDP was revised lower yet again by the Commerce Department to minus 2.9%, the sharpest decline in five years and one of the worst non-recession collapses ever. In addition, durable goods orders fell unexpectedly in May, suggesting that Q2 growth may also fall short of forecasts.

Treasury prices rose with gold on flights to safety while the dollar fell against most major rivals on the GDP news. A weaker dollar supports higher prices for gold and other commodities denominated in the U.S. currency for international trade by making them less expensive to foreign buyers. The other precious metals also gained, with silver adding 0.4% while platinum and palladium picked up 0.1% and 0.3%, respectively.

At the Comex close: August gold added $1.30 to $1,322.60 July silver gained 7 cents to $21.12; July platinum picked up $1.30 to $1,473.20; and September palladium increase by $2.85 to $833.25 an ounce.