Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold edged up slightly to close over $1,227 despite a rising dollar as bargain-hunters stepped into the market after last week's 3.3% slide.

The dollar gained around 0.4% against major rivals, led by strong gains versus the euro as traders took profits from the shared currency's 3% surge against the buck over the past two week. The euro had rallied strongly on expectations that Emmanuel Macron would defeat euro-skeptic Marine Le Pen in yesterday's presidential runoff election, preserving the integrity of the EU.

Oil prices bounced higher after last week's 6% drop as OPEC suggested extending cuts in production into next year. Rising oil tends to support gold as traders seek hedges against energy-related inflation.

James Bullard of the St. Louis Fed said today the weak economic growth and disappointing inflation numbers should slow the pace of rate hikes this year. Upbeat nonfarm payrolls data and a hawkish statement from the Fed after its policy meeting last week helped to boost expectations of a rate hike in June, pressuring gold into its biggest weekly drop of the year.

The other precious metals were mixed, with silver and palladium dropping 0.1% and 0.9%, respectively, while platinum added 1%,

At the Comex close: June gold edged up 20 cents to $1,227.10; July silver dipped 2 cents to $16.26; July platinum rose $9.10 to $919.60; and June palladium dropped $7.32 to $805.55 an ounce.