Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— In light, pre-holiday trade, gold fell 1.9% to close at a seven-week low near $1,219 as strong factory data boosted equities, Treasury yields, and the dollar, slamming demand for alternative assets. Financial markets in the U.S. will be closed tomorrow for Independence Day.

U.S. manufacturing grew at the fastest rate in three years in June, according to the latest ISM report, with new orders, production, and employment prospects all rising. The beleaguered factory sector had been the slowest to recovery from the last recession.

The dollar jumped 0.6% against major rivals, enjoying its biggest day in four months, as traders speculated that the upbeat ISM data will encouraging the Fed to raise interest rates at least one more time this year.

Higher rates boost the buck by attracting foreign exchange investment seeking higher yield; a strong buck, in turn, weighs on gold and other commodities priced in it by making the more expensive to users of other currencies.

Treasury yields climbed sharply on the hawkish rate view, following European and British yields higher. Global equities also rose, with the Down and Global Dow adding more than 0.5%.

The other precious metals were mostly lower, with silver and platinum dropping 3.2% and 2.2%, respectively, while outlier palladium added 0.7%.

At the Comex close: August gold fell $23.10 to $1,219.20; September silver dumped 54 cents to $16.09; October platinum dropped $20.30 to $906.10; and September palladium added $5.75, to $842.40 an ounce.