Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close under $1,924 after a spate of upbeat US economic data boosted risk appetite and undercut demand for safe havens.

Consumer confidence surged to a 17-month high in June, according to the Conference Board, as worries about recession diminished and inflation slowed. The index reading near 110 reflects widespread sentiment that things are improving, but it remains well below levels associated with a healthy economy.

US durable-goods orders rose 1.7% in May for third straight monthly increase, led by strong demand for airplanes and autos. Stripping out transportation, orders increased by a modest 0.6%.

Despite mortgage rates above 7%, new home sales jumped 12.2% in May, the biggest increase in 15 months. And home prices rose nearly 1% nationally, according to the Case-Shiller index, indicating a recovery in the crucial housing sector.

Wall Street rallied on the solid data, which helped to allay fears of imminent recession. The Dow and S&P 500 added 0.6% and 1.1%, respectively, while the Nasdaq rose 1.7%.

Benchmark 10-year Treasury yields climbed back near 3.8% as investors shifted from safety to risk. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Gold's slide was limited by a weaker dollar, which dipped 0.2% after ECB head Christine Lagarde suggested interest rates may continue to climb in the Eurozone, boosting the euro. And residual uncertainty surrounding the aborted couple attempt in Russia over the weekend also supported the metal.

The other precious metals were mixed, with silver and platinum rising 0.6% and 0.1%, respectively, while palladium dropped 0.7%.

At the Comex close: August gold slipped $10 to $1,923.80; July silver rose 13 cents to $22.96; October platinum added $1.10, to $934; and September palladium fell $8.60 to $1.294.10 an ounce.