Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at a four-month low of $1,244 after strong factory data in the U.S. and China diminished interest in safe havens. The ISM said U.S. manufacturing jumped in May at the fastest pace in this year, signaling improved prospects for growth in the second half of the year. Chinese manufacturing also grew by more than expected, reversing a recent slowing trend. The upbeat reports rallied global equities, with the Dow and S&P 500 setting new record closes.

The dollar rallied against the euro and Treasury prices fell again for the biggest three-day drop since March. Falling inflation in Germany and flagging growth in the eurozone is likely to mean the start of Fed-style quantitative easing by the ECB in June, further undermining the euro. A stronger dollar typically pressures gold and other commodities denominated in the buck by making them more costly to holders of other currencies. The other precious metals were mixed, with platinum and palladium losing 1.1% and 0.4%, respectively, while silver bucked the trend by gaining 0.3%

At the Comex close: August gold dipped $2 to $1,244; July silver gained 6 cents to $18.74; July platinum dropped $16 to $1,436.70; and September palladium shed $3.70 to $832.65 an ounce.