Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $1,343 despite downbeat US data as oil fell and traders took profits from the metal's four-day winning streak.

The Empire State manufacturing index fell sharply in June, plunging into negative territory for the first time in two years. The 26-point monthly drop, caused primarily by responses to the ongoing trade war with China and the threat of tariffs against Mexico, was the index's biggest ever.

US homebuilder confidence slid this month, according to the NAHB index, despite strong demand for new construction among consumers. The cost of land and construction materials, with the latter being exacerbated by tariffs, has darkened industry outlook.

Falling oil weighed on gold, with WTI crude dropping another 1.1% on growing concerns that slowing growth with cut demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The Fed begins its two-meeting on monetary policy tomorrow amid wide speculation that lower interest rates are coming, if not this time around, soon. With traders expected to comb the post-meeting statement on Wednesday for signals, any newly dovish language is likely to pressure the dollar and boost gold prices.

The other precious metals mostly lower, with platinum and palladium declining 1.3% and 0.4% while silver added 0.2%.

At the Comex close: August gold dipped $1.60 to $1,342.90; July silver rose 3 cents to $14.83; July platinum dropped $10.10 to $794.60; and September palladium fell $6 to $1,455.50 an ounce.