Daily Gold Update

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Major markets around the world traded sideways Thursday, little changed from Wednesday, as the financial eyes of the world continued to be fixed on the unresolved and almost round the clock Greek debt negotiations in Brussels. Gold traded in a tight $5 range overnight and into Thursday, closing the New York session at $1,171.80 down $1.10.

Despite recent weakness gold and silver continue to hold support at $1,170 and $15.70 respectively. Palladium, however, broke through support at $690 in London, trading as low as $670 early in the New York session before rebounding to just under $680. Platinum, trading at its biggest discount to gold in almost three years, rebounded further from Monday�s cyclical low of $1,058 to as high as $1,085 in the New York session.

The U.S. government reported Thursday that consumer spending surged a seasonally adjusted 0.9% in May, the biggest gain since 2009. Improving labor conditions in the U.S. were cited as the reason for the increase, with personal income rising 0.5% for the second straight month. Consumers seem to increasingly be loosening their grip on their hard earned savings. The U.S. personal savings rate, which has been above 5% since last December and peaked at a two-year high of 5.7% in February declined again this month, from 5.4% in April to 5.1% in May, as consumers spent some of their savings on bigger ticket items like cars and trucks.

Contrarily, the Markit Flash Composite PMI fell from 56.0 in May to 54.6 in June, indicating that while the U.S. economy continues to expand, the rate of expansion is cooling. Readings above 50 indicate economic growth, while readings below 50 indicate economic contraction. June was the third month in a row the composite PMI declined since peaking at a seven-month high of 59.2 in March. While the Atlanta Fed GDPNow forecast is anticipating 2.1% GDP growth (seasonally adjusted annual rate) in the 2nd quarter, the slowing of economic momentum the last three months is leading some economists to question whether the U.S. can continue to sustain this rate of economic growth into the 3rd quarter of 2015.

At the Comex close: August gold slipped $1.10 to $1,171.80; July silver edged 4 cents lower to $15.81; July platinum gained $11.30, to $1,084.40; and September palladium plunged $16.35 to $679.35 an ounce.