Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.3%, breaking a six-day winning streak but holding at $1,272, as rising consumer inflation bolstered the dollar. The CPI for May rose 0.4%, its biggest increase in a year, nudging the annualized inflation rate to just under the Fed's target of 2%.

With the FOMC's two-day meeting starting today, the uptick in prices is expected to encourage further cuts in quantitative easing, the stimulus program that has flooded the economy more than $4 trillion in liquidity since 2008. QE has weighed on the dollar and boosted demand for gold as an alternative store of value. The dollar rose on the news, pressuring gold because it is denominated in dollars for international trade and becomes more expensive to holders of other currencies.

The other precious metals fared a little better. Silver edged up 0.1% while platinum and palladium added 0.3% and 0.9%, respectively. Widely used in manufacturing catalytic converters for automobile engines, the PMGs were aided by reports that European auto sales rose for the ninth straight month.

At the Comex close: August gold slipped $3.30 to $1,272.00; July silver edged up 2 cents to $19.73; July platinum added $4.00, to $1,443.10; and September palladium climbed $7.35 to $816.70 an ounce.