Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished virtually flat, dipping 20 cents to $1,244.30, as softer-than-expected U.S. data were offset by a stronger dollar and rising equities. ADP reported that U.S. companies added 179,000 jobs in May, the fewest in four months and well-below expectations. In addition, the latest Fed Beige Book showed the economy plodding along with flagging growth across ten of the twelve Fed regions.

Gold initially gained on the weak economic news, rising as high as $1,250 in intraday trade before slipping back as the dollar strengthened ahead of tomorrow's expected decision by the ECB to add stimulus, which will devalue the euro. A rising dollar tends to weigh on gold because it is denominated in dollars for international trade and becomes more expensive to foreign investors.

Rising risk appetite also weighed on the yellow metal. The S&P 500 added 0.2% to close at another record high and the Nasdaq gained nearly half a percentage point. The other metals finished marginally higher, with silver leading the way with a 0.2% gain.

At the Comex close: August gold dipped 20 cents to $1,244.30; July silver added 3 cents, to $18.79; July platinum picked up 40 cents to $1,433.90; and September palladium gained 45 cents to $837.15 an ounce.