Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold plunged 2% to close at a fourteen-week low near $1,265 as stronger U.S. economic data stoked risk appetite, pulling traders away from safe havens. Once support was breached at $1,287, automatic stop-loss selling triggered a technical sell-off that pushed the metal to its biggest one-day drop since mid-April.

Consumer confidence rose in May behind optimism about an improving labor market, according to the Conference Board. Services industries expanded at the fastest pace in more than two years. And durable goods orders rose unexpectedly last month, signaling better prospects for the manufacturing sector in coming months.

All major U.S. indexes rose on the upbeat data, with the S&P 500 closing at a new record high for the second straight session. The other metals tracked gold lower, with silver falling 1.8% to a three-week low More closely tied to industrial demand, platinum and palladium fared better, dropping 0.7% and 0.1%, respectively.

At the Comex close: June gold plunged $26.20 to $1,265.50; July silver dropped lost 35 cents to $19.07; July platinum lost $10.50 to $1,462.30; and June palladium dipped 80 cents to $830.65 an ounce.