Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinAfter gaining for most of the session, gold edged down at the end of trading to close under $1,302, losing less than 0.1% as the dollar recouped some earlier losses on solid export and trade data.

The US trade deficit fell to a seven-month low in April, the Commerce Department reported, as exports rose to a record $211 billion. Notably, the data is from before tariffs by the Trump administration took effect, prompting threats of retaliation by trading partners.

The upbeat data helped the dollar cuts its losses from around 0.4% to just 0.2%. The early weakness stemmed from reports that the ECB is likely to end quantitative easing when it meets later this month. Tantamount to printing money, QE flooded Europe with cheap euros to support the region's recovery from the 2008 financial crisis, boosting the buck. The end of the program will support the shared currency to the detriment of the dollar.

The greenback had also been pressured early by revised data showing first-quarter productivity growth was weaker than initially reported, at merely 0.4%. Higher productivity leads to greater profits and rising wages, potentially boosting inflation and prompting higher interest rates.

The other precious metals held onto gains, with silver rising 0.9% while platinum added 0.7% and palladium jumped 3%.

At the Comex close: August gold dipped 80 cents to $1,301.40; July silver rose 15 cents to $16.69; July platinum added $6.30 to $907.60; and September palladium jumped $29.50 to $1,015.20 an ounce.