Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.7% to close below $1,211 as the dollar rebounded and traders took profits from yesterday's rally to a seven-week high of $1,218. Ongoing concerns about Greece and dovish comments from Fed officials limited the metal's downside.

The dollar gained 0.8% against a basket of rivals while the euro fell to a six-day low as Greece's cash crunch becomes more serious. In little more than a week, the beleaguered nation must roll over nearly 1.5 billion euros in short-term debt to keep its doors open. The debt-sales are possible only if Greek banks stay liquid, which has become questionable after months of capital flight and uncertainty whether the ECB will intervene with emergency funds.

Gold's slide was also backstopped by comments from Minneapolis Fed President Narayana Kocherlakota calling for no rates hikes until late 2016. Citing still-low employment and excessively low inflation, he warned that the recovery could be derailed even by expectations of imminently higher rates. Yesterday, New York Fed President William Dudley suggested that recent weakness in the economy, while probably temporary, clouds the outlook for raising rates.

The other precious metals were mostly lower. Silver dropped 1.6% and platinum slipped 0.6% while outlier palladium inched up slightly.

At the Comex close: June gold fell $8 to $1,210.60; May silver dropped 27 cents to $16.84; July platinum lost $6.50 to $1,173.90; and June palladium inched up 20 cents to $769 an ounce.