Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.4% to close under $1,300 on a stronger dollar before jumping back up to $1,302 in electronic trade after hours.

The dollar gained against most major rivals following data showing consumer confidence in the U.S rising to a seven-year high in July. The optimism was fueled by an improving jobs market, lower gasoline prices, and rising equity markets. A rising dollar tends to weigh on the price of gold and other commodities denominated in the currency for international trade by making them more expensive for foreign buyers.

The yellow metal quickly bounced back after hours on safe-haven support from falling U.S. home prices and the announcement of much steeper sanctions against Russia by the EU in response to Putin's refusal to stem the tide of weaponry flowing across the border into the Ukraine. In addition, the IMF warned today that rising interest rates may shave 2% off global growth in the next five years.

The other precious metals were mixed. Silver edged up 0.1% while platinum and palladium slid 0.4% and 0.3%, respectively.

At the Comex close: August gold dropped $5 to $1,298.30; September silver added 2 cents, to $20.58; October platinum slid $6.10 to $1,484.50; and September palladium lost $2.45 to $878.30 an ounce.