Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.6% to close above $1,323 after weak data from Europe boosted the dollar to a fresh four-month high, reducing demand for alternative stores of value. The metal slipped 0.3% for the week.

Britain's economy has suffered a dramatic downturn since the nation voted in late June to leave the EU. According to Markit's flash PMI, combined services and manufacturing fell to the lowest level since 2009, during the height of the global financial crisis, and suggest a return to recession.

As survey of experts conducted by the ECB concluded that Brexit will also damage the Eurozone economy by cutting exports and generating instability in financial markets.

The dollar rallied by another 0.5% against major rivals, hitting its highest level since March, on growing expectations of policy divergence between the Fed and other major central banks. Weakening growth in the UK, EU, and Japan has them on course for additional monetary easing, whereas upbeat U.S. data point toward a possible rate hike sometime this year. CME FedWatch projects 20% probability of a hike in September and 40% in December.

The other precious metals were mostly lower for the day and week. Silver dropped 0.6% today and 2.4% this week. Platinum fell 1.8% for a weekly loss of 0.6%. Outlier palladium edged up 0.1% for a gain of 6% this week.

At the Comex close: August gold slid $7.60 to $1,323.40; September silver lost nearly 13 cents, to $19.69; October platinum dropped $19.60 to $1,088.40; and September palladium inched up 60 cents to $686.05 an ounce.