Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at a four-week low above $1,169 as stronger U.S. jobs and factory data boosted the dollar, reducing demand for alternative stores of value.

Private employers added 237,000 jobs in June, the most in six months and well above consensus forecasts of around 220,000, according to ADP, with most gains coming in the services sector and among small businesses. The solid report raises hopes that tomorrow's U.S. non-farm payrolls data, considered the more authoritative measure, will show similarly healthy job growth.

The ISM reported today that manufacturing growth in June hit the fastest rate since January, and factories plan the increase hiring. However, Markit's new PMI report, also released today, says manufacturing growth eased last month to its slowest in more than 18 months, with the reduction stemming from smaller exports and the strong dollar.

The generally upbeat data helped the dollar rise by around 0.8% against a basket of rivals as traders speculated that faster growth in the second quarter will prompt the Fed to raise interest rates as early as September.

Greece failed to make its schedule debt payment to the IMF, falling technically into "arrears" but essentially into default. Last minute negotiations ended last night after the so-called troika of creditors�IMF, ECB, EC�rejected Greece's final proposal. PM Alexis Tsipras is now exhorting Greeks to vote against the troika's bailout offer in the emergency referendum on July 5.

The gold price received little boost from the demise of talks with Greece, largely because the news was already priced in, but also because the dollar received its own safe-haven bids as traders shifted from euros. A stronger dollar weighs on gold and other commodities by making them more expensive to foreign buyers.

The other precious metals were mixed, with silver slipping less than 0.1% while platinum gained 0.8%. Palladium was the big winner, jumping 4.2% in an overdue correction after falling 13% in June. Widely used in auto manufacturing, palladium is perhaps the most industrial of the precious metals and most likely to respond to rising economic growth.

At the Comex close: August gold dipped $2.50 to $1,169.30; September slipped less than a penny to $15.58; October platinum rose $8.30 to $1,087.80; and September palladium surged $28.55 to $701.20 an ounce.