Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished unchanged, holding all of Friday's 1% rally to remain above $1,303 as marginally stronger U.S. equities were offset by weak housing data and deepening worries about the Ukraine. Traders stayed largely on the sidelines ahead of tomorrow's meeting of the FOMC, hoping for clearer guidance on future interest rate increases.

The U.S. claimed to have proof that missiles fired last week at Ukrainian military aircraft came from within Russia, stoking tensions over Putin's role in the conflict and providing gold with safe-haven bids. Sales of existing homes fell more than expected in June, adding to worries that the crucial U.S. housing sector is losing steam. Hedge funds increased their bullish bets on the gold last week, largely as insurance against geopolitical turmoil in the Ukraine and Middle East.

Second-quarter GDP figures, due out this week, and Friday's non-farm payrolls report are expected to give further direction on when rates could rise. Substantially stronger growth in both arenas could nudge the Fed toward raising rates early next year, despite recent indications from Chair Janet Yellen that ongoing slack in the labor markets will require accommodative monetary policy for longer than many think. The IMF, too, asserted last week that U.S. rates should remain near zero for longer in order to support the fragile world recovery.

Like gold, the dollar finished virtually flat while U.S. equities inched up slightly, with the Dow adding 0.1% and the S&P 500 even less. The other precious metals were mixed. Silver slipped 0.3% while palladium finished virtually flat and platinum gained 0.7%.

At the Comex close: August gold was even at $1,303.30; September silver slipped 7 cents to $20.57; October platinum gained $11.60 to 1,492.00; and September palladium inched up 35 cents to 880.50 an ounce.