Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.8% to close below $1,194 as the dollar rallied on speculation that the Fed may raise interest rate soon despite a recent spate of soft economic data, reducing demand for alternative stores of value.

The dollar jumped nearly 1% after two Fed officials said the first rate hike may still come as early as June. New York Fed President William Dudley and Fed Governor Jerome Powell suggested separately yesterday that the initial increase may come despite low inflation and weak Q1 growth, followed by slower and smaller increases thereafter.

Yesterday's release of FOMC minutes from March showing "several participants" advocating a June hike also supported a stronger dollar, as did today's report from the Labor Department that new claims for unemployment benefits over the last four weeks are the lowest in fifteen years.

The jobless data helps to offset last week's abysmal nonfarm payrolls report, restoring some optimism about the health of the labor market. A rising dollar typically weighs on gold and other commodities by making them more expensive overseas.

The other precious metals were mostly lower. Silver lost 2.3% and platinum slipped 0.5% while outlier palladium added 0.3%.

At the Comex close: June gold fell $9.50 to $1,193.60; May silver lost 39 cents to $16.45; July platinum slipped $5.70 to $1,160.60; and June palladium added $2.20, to $757.90 an ounce.