Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold futures edged down less than 0.1% to close under $1,727 in choppy trade as investors were torn between optimism over the relaxation of lockdowns and pessimism about the growing rift with China over Hong Kong.

With much of the US and the world beginning to emerge from months of sheltering in place, risk appetite surged again on hopes that economies could begin to rebound. The Dow rose another 2.2% while the S&P 500 and Global Dow added 1.5%.

After dropping under $1,702 in intraday trading, gold rebounded to near-flat after Secretary of State Mike Pompeo declared that Hong Kong is no longer autonomous from mainland China. The statement comes in retaliation for China's security crackdown on pro-democracy movements.

Hong Kong has enjoyed special treatment by the US that exempts it from tariffs levied against China, among other commercial advantages. Another escalation in the US-China trade rift, the moves jeopardize some $38 billion in annual trade between the US and Hong Kong.

Also supporting gold's late-session recovery, the Fed's Beige Book for May showed widespread pessimism among businesses over the likely speed of the economic recovery.

The other precious metals were mixed, with silver and platinum adding 0.9% and 0.6%, respectively, while palladium fell 0.4%.

At the Comex close: August gold dipped $1.40 to $1,726.80; July silver rose 16 cents to $17.76; July platinum added $4.80 to $878.10; and September palladium dropped $8.40 to $1,978.40 an ounce.