Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to hold above $1,783 as upbeat US data and concerns about the Delta variant lifted the dollar, pressuring alternative stores of value.

New applications for unemployment benefits fell 29,000 last week to reach a pandemic low of 348,000. It was the fourth straight week of declining claims, suggesting that the economy for now is pushing past the resurgent pandemic.

Also signaling momentum, the Conference Board's leading economic Indicator index rose 0.9% in July.

On the negative side of the ledger, the Philadelphia Fed index fell for the fourth consecutive month in July, with rising prices and supply blockages continuing to stymie manufacturing and create a drag on business activity.

The dollar rose 0.5% against major rivals as worries about the Delta spread pushed Forex investors toward safe-haven currencies. A stronger dollar pressures gold by making it more expensive overseas.

The minutes from the Fed's July meeting, released yesterday, also supported the buck, with most members saying the economy's progress will soon warrant the reduction of the Fed's $120 billion-per-month bond-buying program known as quantitative easing.

Backstopping gold's decline, benchmark 10-year Treasury yields retreated as investors, fearful that the Delta variant may undermine global growth, shifted toward the safety of government bonds. Falling yields buoy gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals were sharply lower, with silver dropping 0.9% while platinum and palladium fell 2.5% and 5.2%, respectively.

At the Comex close: December gold dipped $1.30 to $1,783.10; September silver dropped 22 cents to $23.21; October platinum lost $25.20 to $971.20; and September palladium shed $125.40 to $2,297.90 an ounce.