Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% to close under $1,292 as traders took profits from a strong intraday rise. After pushing above $1,300 for the first time this year, the metal reached as high as $1,306.90 mid-session before retreating in the wake of the White House announcement that Steve Bannon will leave his position as President Trump's chief strategist.

Turmoil in the Trump administration and yesterday's terrorist attack in Barcelona helped push gold well-above critical resistance at $1,300 early in the session. Following a wave of resignation from his advisory councils by CEOs, President Trump disbanded the groups altogether this week, stoking concerns that his pro-business agenda would further stall.

Ironically, new personnel turmoil reversed today's flight to safety. Widely considered a divisive figure who pulled Trump toward extreme positions, Bannon's departure was seen by traders as clearing the way for the president to focus on growing the economy through tax reform and infrastructure programs.

Stocks and the dollar bounced off session low immediately following the Bannon news, while gold and Treasury bonds pulled back. Also pressuring safe havens, consumer sentiment climbed to a 13-year high in August, as tracked by the University of Michigan index.

The other precious metals were mixed, with silver dropping 0.3% while platinum and palladium gained 0.1% each.

At the Comex close: December gold dipped 80 cents to 1,291.60; September silver dropped 5 cents to $17.00; October platinum picked up 70 cents to $982.40; and September palladium added 95 cents, to $927.10 an ounce.