Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close just above $1,821 despite soft economic data and falling equities as strength in the dollar undermined demand for alternative stores of value.

US consumer confidence fell to a 16-month low in June, according to the Conference Board, as Americans grew increasingly apprehensive about inflation and the possibility of recession.

In a separate survey conducted by JP Morgan Chase, only 19% of senior executives in mid-sized firms are confident in the economy in the year ahead. This was the lowest reading in the 12-year history of the survey.

Wall Street turned marked lower on the weak data, with the Dow and S&P 500 losing 1.4% and 1.8%, respectively, while the Nasdaq plunged 2.7%. Benchmark 10-year Treasury yields were little changed.

The dollar jumped 0.5% against major rivals after ECB President Christine Lagarde brought the euro under pressure. Speaking at the ECB annual conference, she signaled that the eurozone will be slower in raising interest rates than most of its peers as the EU is more vulnerable to recession because of Russia’s war on Ukraine.

While rising inflation and the global slowdown remain fundamentally supportive for gold because of demand for inflation hedges and safe havens, the metal nonetheless is hitting short-term headwinds from the stronger dollar, which gains in value as US interest rates rise relative to its peers. A rising dollar makes gold and other commodities pricier in other currencies, limiting overseas demand.

The other precious metals were mixed, with silver dropping 1.7% while platinum added 0.2% and palladium rose 0.6%.

At the Comex close: August gold dipped $3.60 to $1,821.20; July silver fell 36 cents to $20.81; September palladium picked up $3 to $1,861.90; October platinum climbed $5.30 to $905.60 an ounce.