Gold News & Info

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Austin— Gold slid 0.7% to close above $1,182 as the dollar rallied behind encouraging data on jobless claims. In addition, bond yields in Europe and the U.S. continued to climb, reducing demand for alternative assets.

First-time claims for unemployment benefits remained near a 15-year low last week, lending some optimism that the sluggishness that's dominated the economy this year may soon begin to turn around.

Despite yesterday's remarkably weak ADP report showing private-sector job creation falling for the fifth consecutive month, the dollar rebounded on today's jobless data as traders speculated that the crucial non-farm payrolls report, due out tomorrow, may come in stronger than expected. If so, the Fed could be encouraged to put a June rate hike back on the table, which would strengthen to dollar against major rivals. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

Yields on German 10-year bunds rose to a 2015 high yesterday and 10-year Treasury yields hit a five-month high in mid-session today. The surge in yields is mainly caused by speculation that the Fed will raise rates this year. In addition, the ECB's program of Fed-style quantitative easing, which boosts inflation by flooding the economy with liquidity, has succeeded in reducing fears of deflation in the Eurozone, causing regional bonds to sell off.

The other precious metals fell harder than gold, with silver dropping 1.3% while platinum and palladium lost 1% and 0.9%, respectively.

At the Comex close: June gold slid $8.10 to $1,182.20; July silver dropped 21 cents to $16.30; July platinum lost $11.40 to $1,131.40; and June palladium shed $6.90 to $785.75 an ounce.