Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,319 as rising Treasury yields nudged the dollar higher, reducing demand for alternative assets.

Yields climbed on benchmark 10-year Treasury notes after Cleveland Fed President Loretta Mester said the central bank may have to push interest rates above 3% at some point if the economy heats up and inflation takes hold. Traders latched onto the comments, delivered in Paris, as they seek direction about future hikes.

The dollar gained 0.1%, reversing earlier loses behind the rising Treasury yields and bargain-hunting after last week's decline. A rising dollar weighs gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Gold was also pressured by an uptick in risk appetite after President Trump eased fears about trade conflicts with China. In an extraordinary move, the Commerce Department was ordered to expedite its review for the reinstatement of Chinese telecom ZTE, which has been struggling since it was banned from US business for violating sanctions against Iran in 2017. In the President's tweeted words, "too many jobs in China [have been] lost." The Dow added nearly 0.4% and he Global Dow picked up 0.2%.

The other precious metals were mixed, with silver and platinum falling 1.4% and 1.2%, respectively, while palladium added 1.1%.

At the Comex close: June gold dipped $2.50 to $1,318.20; July silver dropped 10 cents to $16.65; July platinum fell $11 to $914.90; and June palladium climbed $10.50 to $995.70 an ounce.