Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slipped 0.7% to close at $3,371 as upbeat economic data and fading trade war worries pressuring safe-haven assets for a second day. Silver also slid 0.7% to finish at $39.02 an ounce.

The US and EU are nearing an agreement to place 15% duties on goods imported into the US. The likely deal follows a similar agreement with Japan earlier this week, helping to soften concerns about damaging trade wars with two major trading partners.

Meanwhile, S&P Global reported that the US services sector grew sharply in June, with the PMI rising above 55, where anything over 50 signals expansion. The manufacturing sector fell into contraction, however, with a PMI of 49.5, the lowest in seven months.

The combined surveys show an economy expanding at a rate of 2.3%, up from 1.3% after Q1. However, price pressure intensified in both sectors.

First-time jobless claims fell by 4,000 last week to 217,000, the lowest level since April. It was the sixth straight week of lower claims, indicating resilience in the labor market despite trade turmoil.

Benchmark 10-year Treasury yields climbed above 4.4% as investors shifted out of safe-haven assets. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Tracking with yield, the dollar added less than 0.2% against major rivals, pressuring gold and other commodities by making them more expensive in other currencies.

Platinum and palladium lost 1.9% and 2.1%, respectively.

At the New York spot close: gold fell $23.10 to $3,371; silver shed 26 cents to $39.02; platinum dropped $26.60 to 1,411.10; and palladium lost $27.25 to $1,241.25 an ounce.