Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.3% to close under $1,295, breaking a seven-day winning streak as traders reassessed Brexit risk in light of the tragic death of a British MP. The metal finished 1.5% higher for the week, notching its third straight weekly gain.

Both sides of the Brexit debate suspended their campaigns yesterday in response to the murder of anti-Brexit politician Jo Cox by a gunman who reportedly shouted "Britain first" before shooting.

With the heated contest on temporary hold, the dollar retreated nearly 0.5% against major rivals as safe-haven worries briefly abated. Investors and forex traders have been buying dollars along with government bonds and gold in anticipation of turmoil in the financial markets if Britain votes to exit the EU next week.

Gold received additional support this week from the Fed's dovish outlook on future interest rates. Following the central bank's policy meeting, Fed Chair Janet Yellen advocated a more cautious approach going forward, citing weak business investment and rising global risks.

St. Louis Fed President Louis Bullard today reinforced the Fed's new go-slow sentiment, outlining the case for a single quarter-point hike over the next 30 months. Low rates support gold by pressuring the dollar, which makes gold and other commodities less expensive to users of other currencies.

The other precious metals were lower for the day and mixed for the week. Silver fell 1.1% but still managed a 0.5% weekly gain. Platinum shed 1.1% on the day and 2.8% on the week. Palladium fell 1% for a 3% weekly decline.

At the Comex close: August gold dipped $3.60 to $1,294.80; July silver lost 20 cents to $17.41; July platinum lost $12.20 to $966.10; and September palladium dropped $5.30 to $529.65 an ounce.