Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close near $1,930 on safe-haven inflows after soft US and Eurozone PMI data raised concerns about global growth, pressuring bond yields and equities. The metal still slid 2.1% for the week on hawkish Fed talk and a wave of rate hikes in Europe.

US business activity fell to a three-month low in June, according to the S&P Global flash composite PMI index. Weakness in manufacturing deepened by more than expected, falling to 46.3, where anything under 50 is contraction.

Growth in the US services sector eased for the first time this year, dropping to 53 on the index, the lowest since March. Service industries account for around two-thirds of US GDP, which is projected to increase by 1.9% in Q2.

Separately, the Eurozone composite PMI weakened in June but remained barely out of contraction at 50.3. It was the lowest reading in five months, signaling a downtrend that bodes ill for the rest of the year.

Wall Street retreated as the weaker data combined with bigger-than-expected rate hikes in the UK and Norway this week to stoke worries about a global recession. The Dow and S&P 500 dropped 0.6% and 0.7%, respectively, while the Nasdaq fell 1%.

Benchmark 10-year Treasury yields eroded under 3.75% as investors sought safety in government debt. Yields had risen earlier in the week, pressuring gold, after Fed Chair Jerome Powell told Congress to expect more rate hikes this year.

Limiting gold's rise, the dollar added 0.5% against major rivals as traders shed riskier currencies. A rising dollar is a headwind for gold by making it pricier overseas.

The other precious metals were mixed for the day and lower for the week. Silver slipped 0.5% for a weekly drop of 7.3%. Platinum dropped 0.3% today and 6.4% this week. Palladium added 0.5% for the session but still lost 9.7% for the week.

At the Comex close: August gold rose $5.90 to $1,929.60; July silver slid 11 cents to $22.35; July platinum dropped $2.80 to $923.70; and September palladium picked up $6.40 to $1,279 an ounce.