Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold inched down less than 0.1% to close under $1,303 as the dollar rebounded on moderating geopolitical tensions, pressuring demand for alternative stores of value. The metal still finished the week 1% higher after renewed saber-rattling between the US and North Korea pushed investors toward safe havens and dovish minutes from the Fed reduced expectations of four rate hikes this year.

Kim Jong Un responded to President Trump's cancellation of the June summit with conciliation, saying he would meet with the President anytime to improve relations. The dialog between the two leaders had regressed once again into nuclear threats this week, sending jitters through international markets and propelling gold to a two-week high.

The dollar rebounded on the improving tone, rising 0.4% against major rivals. The gains came primarily against the euro and pound while the safe-haven Swiss franc and Japanese yen continued to rise against the buck.

Along with ongoing concerns about North Korea, some tepid economic reports limited gold's downside. Consumer sentiment slipped in April after a record-setting March. And existing home sales tumbled 2.5% in April on lack of supply.

The soft data reinforced sentiment that the Fed is unlikely to raise interest rates four times this year. The dovish minutes from the latest FOMC meeting, released Wednesday, signaled a willingness to let inflation run above the 2% target. CME FedWatch dropped the odds of four hikes this year to around 40%, down from 51% one week ago.

The other precious metals were mixed on the day and higher for the week. Silver slid 0.8% but held a 0.6% weekly gain. Platinum dropped 1.2% today but gained 1.7% this week. Palladium was up 1% on the day and 1.9% on the week.

At the Comex close: June gold dipped 70 cents to $1,303.70; July silver dropped 14 cents to $16.55; July platinum lost $11.30 to $901.30; and September palladium rose $9.60 to $975.70 an ounce.