Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% to close at $1,255.50 as the dollar rebounded and traders took profits from recent gains ahead of tomorrow's release of the minutes from the last Fed meeting.

The dollar edged up 0.3% against major rivals, with the euro and pound falling in the aftermath of yesterday's terrorist bombing in Britain that left 22 dead. The uptick was a welcome respite for the buck after it slid to fresh six-month lows yesterday, largely because of ongoing political uncertainty in Washington.

With the dollar down 2.8% in the past month, gold had risen in eight of the past sessions as investors have begun to question whether the Trump administration, hamstrung by controversy, will be able to deliver on promised tax cuts and infrastructure spending.

However, if this month's Fed minutes signal support for a June rate hike, momentum in gold may shift somewhat. Higher rates support the dollar by attracting foreign exchange investment seeking higher yield. A stronger buck, in turn, weighs on gold and other commodities priced in it internationally by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum dropping 0.3% and 0.1%, respectively, while palladium gained 1.8%.

At the Comex close: June gold slid $5.90 to $1,255.50; July silver lost 5 cents to $17.14; July platinum dipped 90 cents to $949.40; and June palladium gained $13.25 to $772.35 an ounce.