Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to hold above $1,304 as political turmoil in Italy and Spain hammered the euro, boosting the dollar and undermining demand for alternative stores of value.

Italy's President Sergio Mattarella blocked the formation of a new, anti-establishment coalition government and rejected the appointment of a euroskeptic economy minister. The move raised new questions about Italy's stability, and whether it can to continue to fund its massive public debt, now standing at two trillion euros. Italian government bonds suffered their worst sell-off in 25 years.

In Spain, center-right PM Mariano Rajoy will face a vote of no-confidence on Friday, potentially leading to his ouster and replacement the Socialist Party, which is has campaigned strongly against the austerity measures imposed on Spain by the EU.

The euro tumbled to a six-month low on the twin crises, which are considered an existential threat to the Eurozone, helping the dollar to rise around 0.8%. A rising dollar pressures gold and other commodities priced in it for global trade by making them more expensive overseas.

Gold's losses were backstopped by safe-haven bids because of Eurozone worries and renewed trade-war concerns after the White House said it will release a list of $50 billion in goods from China that will receive tariffs of 25%.

The other precious metals were mostly lower, with silver and palladium dropping 1.2% and 0.5%, respectively, while platinum added 0.5%.

At the Comex close: August gold slipped $4.90 to $1,304.10; July silver dropped 18 cents to $16.37; July platinum added$4.60, to $905.90; and September palladium lost $4.70 to $971 an ounce.