Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,804 as modest gains in equities, yields, and the dollar prompted traders to take profits from last week's 1.5% rally.

Wall Street pushed higher on expectations that corporate earnings for the second quarter, which will start to be reported this week, will be strong because of the economy's rapid recovery from Covid lockdowns. The S&P 500 and Nasdaq rose to record highs, adding 0.2% and 0.3%, respectively, while the Dow picked up 0.4%.

Treasury yields rose off five-moth lows as whetted risk appetite prompted investors to shift from bonds to stocks. Higher yields create a headwind for gold by increasing the opportunity cost for holding the metal instead of bonds as a safe-haven asset.

Also pressuring gold, the dollar edged up 0.1% against major rivals after consumer inflation expectations rose for the eighth straight month in June, according to the New York Fed survey. The expectation for higher inflation increases speculation that the Fed will accelerate the timeline for raising interest rates, which would lift the dollar and weigh on gold by making it pricier overseas.

Fed Chair Jerome Powell is scheduled to deliver the Fed's semi-annual economic report to Congress this week. Investors will be acutely attentive to any suggestions that rising inflation may shift the central bank's outlook for monetary policy.

The other precious metals traded higher, with silver adding 0.2% while platinum and palladium picked up 1.4% and 1.7%, respectively.

At the Comex close: August gold dipped $6.80 to $1,803.80; September silver rose 6 cents to $26.29; October platinum climbed $27.30 to $1,111.60; and September palladium gained $47.30 to $2,859 an ounce.