Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped another 0.3% to close just under $1,144, marking six down sessions in a row, as generally better economic data and fewer worries about Greece eroded safe-haven demand.

Jobless claims dropped last week by 15,000 to a seasonally-adjusted 281,000, marking nearly five straight months under 300,000 for the longest streak since 2000. The improvement suggested better health in the labor markets despite higher jobless claims during the previous week and a disappointing non-farm payrolls report for June.

One day after the New York Fed region posted improving business conditions and the Fed's Beige Book provided anecdotal evidence of national growth, the Philadelphia Fed reported declining business conditions in June, with growth slowing to a four-month low and employment turning negative for only the second time in two years.

The generally positive data helped the push the dollar to a six-week high against a basket of rivals as traders speculate that the Fed is growing more likely to raise interest rates in September. Fed Chair Janet Yellen, speaking to Congress yesterday, said a rate hike is likely this year if the data continue to improve. Higher rates support the dollar and weigh on gold and other commodities in part by making them more expensive overseas.

Greece appears to be moving closer to short-term stability after its Parliament approved the austerity measures demanded by international creditors. In response, the ECB increased emergency funding for Greek banks and the EU approved a bridge loan of $7 billion to keep the struggling nation afloat until its next tranche of bailout funding is released.

Premiums for physical gold in Shanghai rose again, climbing as high as $4 over spot, as fallout from China's 30% plunge in stock market value continues to spur safe-haven interest in Asia.

The other precious metals fell harder than gold, with silver sliding 0.4% while platinum and palladium lost 1% and 1.7%, respectively.

At the Comex close: August gold slipped $3.50 to $1,143.90; September silver slid 6 cents to $14.984; October platinum dropped $10.10 to $1,011.60; and September palladium lost $10.95 to $631.95 an ounce.