Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,981 despite an untick in the dollar as traders await next week's meeting of the Federal Reserve. It was the metal's second day of gains.

Following yesterday's ISM report that US services businesses grew less than forecast in May, Fed fund futures traders have increased their bets that the Fed will pause interest rates this month. CME FedWatch puts the odds of no change at 81%, up from 76% yesterday, while the likelihood of a quarter-point hike fell under 20%.

Last week's soft ISM factory data and the nonfarm payrolls report showing unemployment jumped from 3.4% to 3.7% last month is also shifting the rate view.

A pause in rate hikes is seen as supporting gold because it underscores that the US economy is slowing, which adds to safe-haven demand for the metal. And a pause keeps a lid on yields, which minimizes the opportunity cost for holding gold instead of bonds.

Gold's gains despite a mild rebound in the dollar, which added 0.1% against major rivals after the Commerce Department said US factory orders rose 0.4% in April. While the increase was less than forecasts, it was the fourth increase in five months.

The other precious metals were also higher, with silver and platinum adding 0.2% while palladium picked up 0.1%.

At the Comex close: August gold gained $7.20 to $1,981.50; July silver added 4 cents, to settle at $23.67; July platinum climbed $2.30 to $1,038.70; and September palladium edged up $1.50 to $1,411.80 an ounce.