Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.8% to close at a three-week low under $1,185 as generally upbeat U.S. data and optimism about Greece boosted risk appetite at the expense of safe havens.

Private employers added 201,000 jobs in May, ADP reported, in line with expectations and well-above the downwardly revised 165,000 added in April. The improvement lends hope that the more important U.S. non-farm payrolls report, due on Friday, will reflect similar gains.

In a separate report, the U.S. trade deficit narrowed in April after surging in March, suggesting the economy may pick up momentum in the second quarter. But the U.S. services sector slowed in May, according to Markit's PMI, which may be a further drag on recovery.

While mixed, the data was strong enough to encourage risk appetite, pushing the Dow higher by 0.4%. In addition, Greece and its EU creditors appear to be closer to a bailout extension that will prevent the cash-strapped nation from slipping into default this month, and perhaps falling out of the Eurozone. The Global Dow picked up 0.5% on the prospect.

Safe-haven U.S. Treasury bonds plunged alongside gold on the data, sending yields to a six-month high. The other precious also fell, with silver dropping 2% while platinum and palladium lost 1% and 1.3%, respectively.

At the Comex close: August gold fell $9.50 to $1,184.90; July silver lost 34 cents to $16.46; July platinum slid $10.70 to $1,102.10; and September palladium surrendered $10 to $758.55 an ounce.