Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slid 0.4% to close above $3,340 as better-than-expected US economic data dimmed the outlook for imminent rate cuts from the Fed, boosting the dollar. Silver shed 0.5% to finish at $38.06 an ounce.

US retail sales rebounded 0.6% in June after the White House delayed many of its extreme tariffs. Consumers spent more on restaurants, autos, clothing, and remodeling projects. The next round of tariffs is slated for early August.

Separately, first-time jobless claims fell again last week, suggesting companies are holding onto employees even if they are not hiring new ones.

The dollar gained 0.3% against major rivals as traders speculated that resilience in the economy will give the Fed time to weigh the inflationary effects of burgeoning trade wars before lowering interest rates.

A stronger dollar weighs on gold and other commodities priced in it for foreign trade by making them more expensive in other currencies.

A pair of Fed officials added to the hawkish outlook on interest rates. Fed Governor Adriana Kugler said the Fed should not cut rates " for some time" until it determines the impact of tariffs. New York Fed President John Williams said tariffs are likely to add 1% to inflation within the next nine months.

Platinum and palladium rose 1% and 4.2%, respectively, as the escalating Russia-Ukraine war impacts supplies from Russia, a leading producer of PMGs.

At the New York spot close: gold dipped $12.40 to $3,340.10; silver slipped 20 cents to $38.06; platinum picked up $14.05 to $1,454.30; and palladium jumped $52.15 to $1,291 an ounce.