Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.6% to close under $1,916 after robust jobs and services-sector data fueled higher interest-rate expectations, lifting yields and pressuring alternative assets. It was the metal's lowest finish since mid-March.

ADP reported that private payrolls surged by an astounding 497,000 jobs last month, far more than forecast. Employers in the services sector, which accounts for around two-thirds of the economy, added 272,000 while the manufacturing sector rose by 124,000. Annualized wages grew at a slightly slower pace of 6.4%, down from 6.5% in May.

Consistent with its job growth, the services sector expanded by more than expected in June. The ISM business barometer rose to 53.9%, up from 50.3% in May, where any reading above 50% signals expansion.

Benchmark 10-year Treasury yields jumped above 4% as traders speculated that the hot data may force the Fed to continue hiking interest rates. Rising yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

In the past two days, both John Williams of the New York Fed and Dallas Fed President Lorie Logan have stated that the unexpectedly strong economy will require additional rate hikes this year to bring inflation back down towards 2%. Fed fund futures traders now see a 92% chance of a quarter-point increase this month.

The other precious metals also fell, with silver dropping 2.2% while platinum and palladium lost 1.7% and 1.5%, respectively.

At the Comex close: August gold slid $11.70 to $1,915.40; September silver shed 51 cents to $22.89; October platinum dropped $15.30 to $909.70; and September palladium futures fell $18.50 to $1,239.40 an ounce.