Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold rose for a third session, gaining 0.6% to close above $1,256, as the dollar rolled back on mixed data and doubts about further rate hikes from the Fed. The metal closed the week virtually flat, down ten cents from last Friday.

James Bullard of the St Louis Fed said the central bank should pause raising interest rates because the economy is stuck in a "low growth, low inflation" equilibrium. The recent downturn in inflation and persistently weak growth this year have led Bullard to call for holding rates steady into 2019.

Markit's flash PMI showed manufacturing fell in June to the lowest level in nine months. Meanwhile, sales of new homes jumped 2.9% in May after a soft April, signaling residual strength in the housing market.

The dollar fell sharply against major rivals as traders had doubts about the Fed's willingness to raise interest rates again this year. A falling dollar supports gold and other commodities denominated in it for international trade by making them less expensive in other currencies.

The other precious metals were mixed on the day and week. Silver rose 0.8% but lost a cent for the week. Platinum added 0.4% on the day for a weekly gain of 0.3%. Palladium fell 2.7% today and 1% this week.

At the Comex close: August gold added $7, to $1,256.40; July silver climbed 14 cents to $16.65; July platinum picked up $3.80, to $929.40; and September palladium fell $23.85 to $856.65 an ounce.