Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell for an eight session, down 0.5% to close at a three-month low just under $1,214, as the dollar strengthened on improved GDP data. The metal then slid another few bucks to $1,211 in electronic trade after Fed Chair Janet Yellen said an increase in interest rates is probable "in the coming months." While still up 15% this year, the metal is on course for a 6% monthly decline after finishing the week down 3.1%.

The Commerce Department revised Q1 GDP growth upwards to 0.8% from an initial reading of 0.5% on stronger home building and inventories. While still weak, the higher growth number supports the view that the economy is improving enough to support another rate hike. Most estimates project GDP to expand by more than 2% in Q2, based on rising retail sales and a hot housing market.

The dollar gained 0.4% on the growth revision, pressuring gold and other commodities denominated in it for international trade. The buck then extended its gains after Yellen, speaking at Harvard, joined fellow Fed members by signaling the likelihood of an imminent rate hike if the economy and labor market continue to improve.

The other precious metals also finished lower for the day and week. Silver fell 0.5% for a weekly loss of 1.6%. Platinum dropped 1.4% today and 4% this week. Palladium lost 0.9% on the day and 3.8% on the week.

At the Comex close: June gold fell $6.60 to $1,213.80; July silver slid 7 cents to $16.27; July platinum dropped $13.60 to $982.20; and September palladium lost $4.65 to $539 an ounce.