Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped another 0.7% to close at $1,174.50 as the dollar rallied on soft global manufacturing reports, diminishing demand for alternative assets. The metal finished the week nearly flat after rallying to a three-week high on Tuesday, only to surrender those gains late in the week after the Fed left the door open to a June rate hike.

The ISM index of nationwide factory activity was stuck at 51.50 in April, the lowest in nearly two years, and its employment sub-index dropped to 48.3, the lowest level in five years. Readings over 50 indicate expansion.

This sluggish U.S. manufacturing was echoed in Europe and Asia. Factory output in the U.K. slowed sharply last month while China remained stuck in neutral and both Japan and Korea went into reverse.

Responding to the relatively weaker data outside of the U.S., the dollar rebounded against major rivals, pressuring gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers.

The buck was nalso supported by comments from Cleveland Fed President Loretta Mester that a June rate hike remains "on the table." She reiterated this week's FOMC policy statement by dismissing the economy's first-quarter slowdown, which netted an abysmal 0.2% growth in GDP, as largely the result of "transitory factors."

The other precious metals were down on the day but higher for the week. Silver dipped 0.1% today but gained 3.2% this week. Platinum dropped 0.9% for the day but preserved a gain of 0.7% this week. Palladium slid 0.4% but held onto a 0.5% weekly rise.

At the Comex close: June gold fell $7.90 to $1,174.50; July silver dipped 2 cents to $16.13; July platinum lost $10.70 to $1,129.70; and June palladium slid $2.75 to $773.75 an ounce, trading up 0.5% for the week.