Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.5% to close at $1,336 as expectations of additional easing overseas stoked risk appetite and reduced safe-haven demand. Silver dipped 0.2% to $20.26, buoyed by rising industrial demand.

Noting that the UK economic outlook has weakened after Brexit, Bank of England chief Mark Carney today signaled that additional monetary stimulus is likely when the BOE meets later this week. Analysts expect the first rate cut in seven years, with possibly more measures to follow.

Former Fed President ben Bernanke met with Japanese Prime Minister Shinzo Abe to discuss ways to combat Japan's persistent deflation. Bernanke reportedly advocated addition stimulus, leading to speculation that more aggressive quantitative easing will be forthcoming.

The prospect of additional global stimulus helped to fuel equity markets, pushing the Dow and S&P 500 to new record highs. U.S. Treasury yields jumped by the most in eight weeks on the heightened risk appetite and oil prices jumped 4.6% to a one-week high.

Platinum lost 0.9% while palladium dropped 0.5%.

At the Comex close: August gold fell $20.60 to $1,336; September silver slipped 4 cents to $20.26; October platinum dropped $10.20 to $1,097.90; and September palladium $3.20, to $628.95 an ounce.