Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close above $1,275 as weakness in the dollar and stocks spurred safe-haven demand. The metal finished 0.6% higher for the month of May.

The dollar fell 0.4% against major rivals while the pound strengthened on new reports that support for PM Theresa May's Tory Party is solidifying ahead of the snap elections on June 8. May called for the elections to increase her leverage in Brexit negotiations by building her Tory majority. Recent polls had shown the strategy backfiring as Labor Party support grew, which weighed on the pound.

Soft housing data also weighed on the buck after pending home sales fell in April and March numbers were revised downward. Dynamism in the housing market, after being a primary driver of economic expansion, has faltered in recent months as high prices, low inventory, and rising interest rates take their toll.

Wall Street stumbled, with the Dow and Global Dow slipping around 0.2%, led by weakness in financial and energy stocks.

The Fed Beige Book reported "modest to moderate" growth through May despite slowdowns in the Chicago and New York regions. The overall assessment was generally upbeat, suggesting that the Fed may still raise interest rates a quarter-point in June. However, analysts said the noting of regional weakness may cause the pace of subsequent hikes to be reconsidered.

The other precious metals were mixed for the day and month. Silver dipped 0.1% but closed May with a gain of 0.8%. Platinum gained 1% today for a monthly gain of 0.2%. Palladium jumped 1.7% today but lost 1.3% this month.

At the Comex close: August gold gained $9.70 to $1,275.40; July silver dipped 2 cents to $17.41; July platinum jumped $9.20 to $950.30; and September palladium rose $13.30 to $815.95 an ounce.