Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.3% to close above $1,242 as the dollar and equities rose, cutting into demand for alternative assets. The metal closed June 2.6% lower, but remains up around 8% for the year.

The dollar bounced 0.2% higher against major rivals as traders took profits from this week's surges in the euro and pound. A rising dollar typically pressures gold and other commodities priced in it for international trade by making them more expensive in other currencies

Hawkish comments from Mario Draghi of the European Central Bank and Mark Carney of the Bank of England had boosted their respective currencies while signaling a shit in monetary policies away from ultra-low interest rates and monetary easing.

The buck pared its gains today after consumer spending and inflation data came in weaker than expected. The commerce Department reported spending rose just 0.1% in May, while the Fed's preferred measure of inflation, the PCE index, dipped 0.1%. The dollar's quarterly loss of 4.6% was its worst in nearly seven years.

The Dow and S&P 500 gained around each 0.5% as consumer sentiment for June beat expectations and the Chicago Fed's regional PMI rose to the highest level in more than three years.

The other precious metals were mixed. Silver dropped 0.2% for the day, posting a monthly loss of 4.4%. Platinum rose 0.4% today but lost 4.4% this month. Palladium fell 1.1% today but gained 2.5% in June.

At the Comex close: August gold slid $3.50 to $1,242.30; September silver dropped 3 cents to $16.63; October platinum added $3.30, to $926.40; and September palladium fell $9.45 to $836.65 an ounce.