Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged higher by 0.2% to close above $1,332, nearly a one-week high, as faltering stocks spurred safe-haven demand.

Global equities pulled back as a result of weak earnings reports news that the IMF cut its outlook for world growth for the fifth time in 15 months, citing uncertainty over the ramifications of Brexit. The Global Dow lost 0.5% and the S&P 500 slipped by 0.2% after hitting record highs earlier in the session.

Gold's gains were capped by a stronger dollar, which jumped by 0.5% to a four-month high after new home starts jumped nearly 5% in June. A rising dollar typically pressures gold and other commodities by making them more expensive overseas.

Combined with June's improvements in job growth and retail spending, the upbeat construction data has increased speculation that the Fed may raise interest rates sooner than expected. CME Fedwatch calculates nearly 20% probability of a hike in November, up from less than 15% yesterday, and nearly 40% in December. However, all the data thus far has been pre-Brexit, and Fed members have stressed the need to gauge Brexit fallout fully before tightening monetary policy.

The other precious metals were mixed, with silver and platinum both sliding 0.3% while palladium jumped 1.6%.

At the Comex close: August gold gained $3 to $1,332.30; September silver dropped 7 cents or to $20.01; October platinum slid $3 to $1,098.60; and September palladium climbed $10.35 to $656.40 an ounce.