Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold inched down 0.1% to close under $1,265 as rising equities stoked risk-appetite, reducing demand for safe havens.

The Dow, S&P 500, and Global Dow all gained more than 1.1% today, buoyed by higher corporate earnings and a 3% rise in oil prices, which propelled energy shares higher. Gaining around 200 points, the Dow had its best day in two months.

Lending further impetus to equities was last Friday's surprisingly weak nonfarm payrolls report, which showed only 160,000 new jobs created in April, the least in seven months. Traders expect the soft employment data to prevent the Fed from hiking interest rates in June. Indeed, the CME FedWatch tool, which monitors Fed fund futures, calculates the probability of a June hike at just 9%, compared to 57% in December.

The dollar extended its rally, adding around 0.2% against major rivals. The yen fell to a two-week low against the buck after Taro Aso, Japan�s finance minister, said it would be "natural" for the BOJ to weaken the yen if it climbs much higher. A stronger dollar typically weighs on gold and other commodities by making them more expensive to users of other currencies.

The other precious metals were mostly higher, with platinum and 0plladium adding 0.2% and 1.4%, respectively, while silver finished virtually unchanged.

At the Comex close: June gold dipped $1.80 to $1,264.80; July silver finished flat at $17.09; July platinum picked up $2.50 to $1,049.30; and June palladium gained $8.10 to $592.20 an ounce.