Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold eased 0.3% to close under $1,877 as solid economic data lifted the dollar, prompting traders to take profits from the metal's six-day rally to a four-month high. Gold ended the week 2.1% higher for its third straight weekly rise.

Markit's flash US composite PMI soared to a record-high above 68 in May, reflecting strong economic growth as vaccinations and business reopenings continue. The services sector led the way with a reading above 70, an all-time high, while manufacturing also hit a record, at 61.5.

Separately, sales of existing homes fell to a 10-month low in April, with low mortgage rates and little inventory driving prices to record highs.

The dollar bounced off a four-month low, adding 0.2% against major rivals, as traders speculated that the upbeat data could push the Fed to think about tapering its monthly $120 billion program of quantitative easing. The buck still fell 0.3% for the week, supporting gold and other commodities priced in it by making them cheaper in other currencies.

Stocks were mixed, with the Dow adding 0.4% while the Nasdaq lost 0.4% and the S&P 500 was little changed.

Stemming gold's losses, benchmark 10-year Treasury yields declined further, reducing the opportunity cost for holding the metal instead of bonds as a safe-haven asset.

The other precious metals were down for the day and mixed for the week. Silver slid 2.1% for the session but added 0.4% for the week. Platinum dropped 3% for a weekly loss of 4.4%. Palladium fell 3.3% today and 4.1% this week.

At the Comex close: June gold dropped $5.20 to $1,876.70; July silver fell 58 cents to $27.49; July platinum lost $35.60 to $1,169.40; and June palladium shed $95.20 to $2,775 an ounce.