Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close at $1,256.50 after a spate of downbeat U.S. economic data pressured the dollar, boosting demand for alternative stores of value. The metal closed the week down 1.2% for its second weekly loss after five straight gains.

Housing starts hit an eight-month low in May, as construction activity declined across the nation. Shortages of labor and land were blamed for the broad weakness in construction, which is expected to weigh on GDP growth in the second quarter.

Consumer sentiment in June fell to the lowest level since last November, with a sharp drop coming in the aftermath of former FBI director James Comey's testimony before Congress. Members of both political parties are less optimistic about the economy, but Republicans are experiencing a greater erosion of confidence, according to the University of Michigan survey.

Two Fed member pushed back against the central banks hawkish rate view today. Neil Karshkari of the Minneapolis Fed disagreed with Janet Yellen's characterization of recent inflation weakness as temporary, warning that the Fed should wait for hard evidence of inflation pressure before hiking. Separately, Robert Kaplan of the Dallas Fed echoed the caution, saying the Fed "should be very careful about raising rates" going forward.

The dollar slipped 0.3% against major rivals on the soft data, supporting gold and most commodities denominated in it for international trade.

The other precious metals were mixed for the day and week. Silver slid 0.3% for a weekly loss of 3.3%. Platinum rose 0.6% today but lost 1.4% this week. Palladium rose 0.7% on the day and 1.1% on the week.

At the Comex close: August gold gained $1.90 to $1,256.50; July silver slid 6 cents to $16.66; July platinum added $5.50, to $926.80; and September palladium climbed $7.70 to $865.65 an ounce.