Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold held near a two-week high, edging down 40 cents to remain above $1,247, as traders mulled yesterday's equivocal statements from the Fed Chair about the timing of future rate hikes.

In a speech in Philadelphia, Janet Yellen warned on Monday that higher interest rates are likely "if incoming data are consistent with labor market conditions strengthening and inflation making progress toward our 2 percent objective." Notably, she dropped the "in coming months" qualifier mentioned just two weeks ago, leading analysts to conclude that a rate hike this summer is probably off the table.

Employment data over the last few days has certainly violated the Fed's criteria. After Friday's terrible nonfarm payrolls report, which showed just 38,000 jobs added in May, the Fed's index tracking 19 employment indicators was negative for the fifth straight month in May, marking the weakest stretch since the Great Recession in 2009. An employment gauge from the Conference Board also fell last month, suggesting job growth will remain anemic through the summer.

The dollar declined again on Yellen's equivocation and the softer jobs data, stemming gold's slippage. A weaker dollar supports commodities denominated in it for international trade by making them less expensive overseas.

The other precious metals were mixed, with silver and palladium falling 0.3% and 0.9%, respectively, while platinum picked up 0.3%.

At the Comex close: August gold edged down 40 cents to $1,247; July silver slid 5 cents to $16.39; July platinum picked up $2.90 to $999.40; and September palladium dropped $4.85 to $552.15 an ounce.