Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% to close just above $1,306 as upbeat U.S. housing data and easing tensions over the Ukraine crisis lifted risk appetite. Pro-Russian insurgents agreed to turn over black boxes from downed Malaysian Airlines jetliner, helping to diffuse international anger over the incident. Analysis of the recording devices should shed light on those responsible for the tragedy.

Sales of existing U.S. homes rose to an eight-month high in June, fueling optimism that economic growth will improve in the second half of the year. U.S. and global equities gained, with the S&P 500 picking up more than 0.5% to a new all-time high. Consumer prices ticked up in June, rising 0.3% overall while core prices, those excluding food and energy, increased by a scant 0.1%, the smallest amount in four months.

Despite slower inflation, the dollar rose against most rivals on softer safe-haven demand and speculation that the Fed is on course to raise interest rates early next year. A stronger dollar typically weighs on precious metals because they are denominating in the dollar for international trade and become more expensive for foreign buyers. Silver finished flat for the session while platinum and palladium slid 0.3% and 0.2%, respectively.

At the Comex close: August gold slipped $7.60 to $1,306.30; September silver finished virtually flat at $21; October platinum slid $5.10 to $1,488.30; and September palladium dipped $2.30 to $874.85 an ounce.