Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1.4% to close at $1,339, the highest level in almost two years, as Brexit fallout weakened dollar again and boosted demand for alternative assets. Finishing the week 1.7% higher, the metal gained 7% in the second quarter and nearly 27% so far this year.

Silver fared even better, rocketing 5.2% to close at $19.59, its highest finish since August 2014. Posting a 10.1% rally this week, silver closed Q2 with a 20% gain and has risen around 40% year-to-date.

Turmoil from Britain's shocking vote to leave the EU continues to drive investors into safe-haven government bonds, too. Yields on U.S. Treasury bonds, which move inversely to their prices, fell to record lows. Holdings in negative-yield global bonds reached a record $11.7 trillion last week, up from $1.3 trillion a month ago.

The dollar weakened further, dropping 0.3% against major rivals as traders speculate that the Fed will be unable to raise interest rates any time soon. Central banks in Britain, Europe, and China have all signaled the likelihood of looser monetary policies in the near future. Fed Vice Chair Stanley Fischer said today that the Fed will be resistant to raising rates until the impact of Brexit can be fully determined, which may take many months.

Gold's gains were capped by decent factory data. The ISM reported U.S. manufacturing grew at its fastest pace in 15 months in June, thought the index remained only modestly above contraction at 53.2%.

The other two precious metals finished sharply higher. Platinum jumped 3.2% to gain 7% on the week, while palladium added 1.4% for an 11% weekly rise.

At the Comex close: August gold surged $18.40 to $1,339; September silver surged 97cents to $19.59; October platinum jumped $32.80 to $1,057.10; and September palladium gained $8.30 to $605.65 an ounce.