Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was near-flat, dropping less than 0.1% to hold above $1,750, as rising risk appetite because of improving economic data was offset by concerns about US-China trade tensions.

The global economy appears to be rebooting after coronavirus downturn. Factory activity in France rose in May after a record plunge in April; the services and construction sectors in China rose, matching recent gains in manufacturing; and US manufacturing activity rebounded in May after hitting an 11-year low the month before.

Global equities rallied on the improving outlook, with the Dow adding 0.4% while the Global Dow rose 0.9%. US Treasury yields rose modestly as traders shifted toward riskier assets.

Haven buying backstopped gold nonetheless as trade conflicts deepened between the US and China. Beijing instructed state-run companies to stop importing US agricultural products including pork and beans, essentially nullifying a key part of last year's Phase One trade agreement.

The move follows President Trump's announcement on Friday that Hong Kong's special trade status will be revoked because of China's new security laws violating the city-state's autonomy.

Also supporting gold, the dollar lost 0.5% against major rivals as the improving global outlook pulled currency traders toward risk. A falling dollar lifts gold and other commodities by making them less expensive in other currencies.

The other precious metals were higher, with silver rising 1.8% while platinum and palladium picked up 3% and 0.8%, respectively.

At the Comex close: August gold dipped $1.40 to $1,750.30; July silver rose 33 cents to $18.83; July platinum climbed $23.80 to $901.10; and September gained $15.50 to $1,988.40 an ounce.