Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close at a fresh six-month low under $1,257 as the dollar jumped on positive trade news, reducing demand for alternative stores of value.

The US trade deficit shrank 3.7% in May, more than forecast, to post its second monthly decline in a row. Exports rose 2.1% while imports edged up 0.2%. The surprising drop is prompting optimism that GDP growth could top 5% in the second quarter.

Worries eased somewhat over trade tensions with China after the Trump administration announced it would use existing laws to control Chinese investment in US tech companies, rather than using harsher methods via executive action.

The dollar jumped 0.7% on the upbeat trade news despite reports that orders for durable goods dropped 0.6% in May on worries about tariffs. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

The other precious metals also fell, with silver dropping 0.6% while platinum and palladium lost 1.5% and 1.1%, respectively.

At the Comex close: August gold dropped $3.80 to $1,256.10; September silver slid 9 cents to $16.24; October platinum fell $12.70 to $862; and September palladium lost $10.80 to $943.90 an ounce.