Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.5% to close at a two-week low above $1,272 as the dollar rallied and investors turned to riskier assets with the Brexit threat receding.

While still uncertain, sentiment for remaining within the EU appears to be winning out, according to recent surveys taken in advance of the UK vote this Thursday. A British exit from the union would likely destabilize financial markets around the world and damage global growth.

Risk-appetite rebounded for a second day, with the Dow and Global Dow both up around 0.3%. The dollar also rallied, adding 0.3% to pressure gold and other commodities denominated in it for international trade by making them more expensive overseas.

Testifying on monetary policy before Congress today, Fed Chair Janet Yellen reinforced the dovish tone set after last week's FOMC meeting, saying the Fed would be unlikely to raise interest rates until data shows substantial improvements in job creation. She also said a Brexit would darken the outlook for the U.S. economy.

The other precious metals were mostly lower, with silver and platinum dropping 1.1% and 0.6%, respectively, while outlier palladium picked up 0.5%.

At the Comex close: August gold fell $19.60 to $1,272.50; July silver dropped 20 cents to $17.32; July platinum slid $5.70 to $981.50; and September palladium picked up $2.90 to $551.35 an ounce.