Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close near $1,344 as soft US data and Middle East violence fueled demand for safe-haven assets. The metal has gained in 11 of the last 12 sessions to post a 2% rise so far in June.

Two oil tankers were attacked near the Strait of Hormuz, allegedly by rogue Iranian elements, as Japanese PM Shinzo Abe was visiting Tehran on a diplomatic mission to smooth relations between Iran and the US. One of the ships was Japanese. The incident follows the damaging of four tankers last month by Iranian mines.

Oil prices rebounded sharply, with WTI crude rising 2.2% on fears of supply disruptions. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Jobless claims rose unexpectedly, underscoring the slowdown in the labor market signaled by last Friday's subpar nonfarm payrolls report. Only 75,000 new job were added last month, according to the NFP report, and totals for the prior two months were revised lower by 75,000.

The drop in hiring accompanies other signs that the economy has entered a rough patch, including lower manufacturing output, weakness in the services sector, declining home sales, and reductions in consumer spending. The Atlanta Fed now projects GDP to grow just 1.4% in Q2, down from 3.1% in Q1.

Import prices fell 0.3% in May, the biggest decline since December, with the cost of food, industrial supplies, and oil all dropping with slower global growth. Following a near-flat CPI in May, the falling import prices add to expectations that the Fed will cut interest rates in coming months.

CME FedWatch projects a 29% chance of a rate cut when the Fed meets next week. Odds for the July meeting jump to 89%, based on Fed-funds futures trading. Falling interest rates pressure the dollar, boosting gold in turn by making it less expensive in other currencies.

The other precious metals were mostly higher, with silver and palladium rising 0.9% and 2.3%, respectively, while platinum dipped 0.1%.

At the Comex close: August gold gained $6.90 to $1,343.70; July silver climbed 14 cents to $14.8; July platinum dropped $1.10, or 0.1%, at $809.40; and September palladium added $32.60, to $1,438.20 an ounce.