Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Rising for a third session, gold gained 0.3% to close near $1,228 as the dollar slipped on disappointing inflation and retailing data, feeding demand for alternative store of value. The metal finished the week 0.1% higher.

The U.S. core consumer price index rose by 1.9% year-over-year in April for the smallest increase in 16 months. In addition, retail sales picked up 0.4%, missing expectations. Traders saw the subpar reports easing pressure on the Fed to raise rates in June, with CME Fedwatch dropping the odds for two more hikes this year from 53% to 49% after the data was released.

The dollar retreat 0.5% against major rivals, supporting gold and other commodities denominated in it for international trade by making them less expensive on other currencies.

Gold received added support from political uncertainty following the abrupt firing of FBI head James Comey, which continues to preoccupy Washington and rattle markets. Treasury yields fell again for their biggest weekly drop in month as investors shifted away from risk into safe havens.

The other precious metals were mixed on the day and week. Silver gained for a third day, adding 0.8% for a weekly rise of 0.8%. Platinum dipped slightly but gained 0.8% for the week. Palladium added 0.6% today but lost 1.2% this week.

At the Comex close: June gold gained $3.50 to $1,227.70; July silver rose 14 cents to $16.40; July platinum dipped 20 cents to $917.50; and June palladium added $4.55, to $803.50 an ounce.