Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold eased lower by 0.1% as upbeat U.S. economic data spurred risk appetite and rallied the dollar. Orders for durable goods rose more than expected in May and business spending picked up for a third consecutive month. Sales of new homes jumped to a five-year high last month, encouraging consumer confidence to climb in June to its highest level since early 2008. The positive reports caused traders to shift back toward risk, driving the S&P 500 nearly 1% higher and the Global Dow up by 0.8%.

The dollar pushed up against most major rivals, pressuring gold, and Treasury prices fell as traders took the data to support the possibility that the Fed may taper quantitative easing later this year. Tantamount to printing money, QE has helped gold to surge by 60% since 2008 because it devalues the dollar and increases the risk of long-term inflation. The other metals gained, with silver adding 0.2% while platinum and palladium, more directly tied to industry, picked up 1.6% and 1.7%, respectively, on improving prospects for U.S. car sales.

At the Comex close: August gold edged down by $2 to $1,275.10; July silver added 4 cents, to $19.53; July platinum gained $21.40 to $1,350.50; and September palladium rose $11.15 to $668.60 an ounce.