Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,825 as yields rose on upbeat US data, undercutting alternative stores of value despite a retreating dollar.

Orders for long-lasting goods like cars and heavy machinery rose 0.7% in May, beating expectations, and business investment added 0.5%. The data showed resilience in manufacturing although factories are moderating plans for expansion because of worries about a possible recession, according to a June survey of manufacturing executives.

Separately, US pending home sales rose 0.7% in May, according to an index released by the National Association of Realtors. The increase follows six straight months of declines.

Benchmark 10-year Treasury yields climbed above 3.2% as traders viewed the improved data as potentially pushing the Fed toward aggressive rate hikes. Yields had tumbled in recent weeks as slowing in the economy was thought to weaken the case for more huge rate increases.

Higher yields tend to weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar retreated 0.3% against major rivals on the softening inflation expectations, backstopping gold’s slide by making it cheaper in other currencies.

Providing additional support, the US and major allies have moved to ban Russian gold exports to increase sanctions for its unprovoked invasion of Ukraine. The world’s third-largest gold producer, Russia supplies around 10% of world gold production.

The other precious metals were higher, with silver and platinum added 0.2% and less than 0.1%, respectively, while palladium climbed 2.6%.

At the Comex close: August gold slid $5.50 to $1,824.80; July silver added 4 cents, to $21.17; July platinum picked up 40 cents to $904.10; and September palladium climbed $4.60 to $1,858.90 per ounce.