Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,290 as upbeat manufacturing data boosted the dollar, pressuring alternative stores of value. The metal then bounced above $1,298 in electronic trading after the minutes from the latest Federal Reserve meeting suggested a slow pace in raising interest rates.

The Markit flash PMI showed US manufacturing rising in May to the highest level since September 2014, with strong gains in new business. A similar service-sector survey rose a three-month high.

The dollar climbed to a 0.4% to its highest level this year, supported by the positive economic data and by selloffs in two major rivals. Growing concerns over political turmoil in Italy, where a euro-skeptic coalition government is taking power, and disappointing inflation data in the UK hurt sentiment for the euro and pound.

Safe-haven currencies like the Swiss franc and Japanese yen rallied against the buck, however, on growing geopolitical worries. Trade talks between the US and China have taken a pessimistic turn this week and concerns are mounting that President Trump's North Korea summit on denuclearization will not occur.

Gold has been underpinned in recent sessions by these concerns over geopolitics despite the strengthening dollar, which tends to weigh on commodities like gold by making them more expensive in other currencies. The metal received further support after hours, jumping nearly $9 when the Fed's minutes showed little concern about rising inflationary pressures. Widely expected to lift rates by a quarter-point in June, the central bank appears to remain on pace for no more than three rate hikes in 2018.

The other precious metals also closed lower, with silver losing 1% while platinum and palladium fell 0.9% and 1.6%, respectively.

At the Comex close: June gold dipped $2.40 to $1,289.60; July silver dropped $12 to $16.40; July platinum slid $8 to $900.80; and June palladium lost $15.70 to $971.10 an ounce.