Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.6% to close above $1,271 as the dollar rose on the outcome of yesterday's snap election in the UK, diminishing demand for alternative stores of value. The metal lost 0.7% on the week after five straight weekly wins.

PM Theresa May's gambit to increase control over Parliament backfired yesterday as her Conservative Party lost seats in a snap election. May engineered the unnecessary vote in hopes of gaining more leverage in Brexit talks with the EU, scheduled to begin this month. Instead, she lost the governing majority and will enter talks in a weakened position, adding to uncertainty in the British economy.

The UK pound tumbled to a seven-week low on the election outcome, helping to boost the dollar 0.2% against major rivals today and around 0.8% this week. A stronger buck can weigh on gold and other commodities denominated in it for international trade by making them more expensive for users of other currencies.

The other precious metals were mixed, with silver falling 1.1% while platinum and palladium added 0.2% and 1.2%, respectively.

At the Comex close: August gold slipped $8.10 to $1,271.40; July silver dropped 19 cents to $17.22; July platinum rose $2.20 to $940.30; and September palladium climbed $9.70 to $856.20 an ounce.