Daily Gold Update

Source:Matt Warden, American Gold Exchange

AustinTechnically, gold slipped by a modest 0.05% today to close at $1709.70, but remains firmly above $1700 support this week as the US dollar continues to edge lower on expectations of a smaller than one-percent rate hike from the Fed at the conclusion of their FOMC meeting on July 27 and an increasing likelihood the European Central Bank will raise rates later this week.

The US dollar index continued to recede from 20-year highs, dropping 0.68 on the DXY to below 107 for the first time in the last five trading sessions. The decline began this morning after reports the European Central Bank is looking closely at the potential of a 50-basis point rate hike this coming Thursday.

The dollar has been inordinately strong against other currencies recently due to the interest rate differential between the US and other major trading partners like Japan, the Eurozone, and Great Britain. The stronger dollar has pressured gold and other commodities recently by making them more expensive in other currencies, reducing demand overseas.

The other precious metals were mixed today, with silver dropping 0.8% while platinum and palladium added 0.8% and 1%, respectively.

At the Comex close: August gold dipped 50¢ to $1,709.70; September silver fell by 15¢ to $18.69; October platinum climbed $5.90 to $861.90; and September palladium rose $15.90 to $1,865.00 an ounce.