Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close under $1,300 after stronger jobs and manufacturing data boosted the dollar, eroding demand for alternative store of value. The metal lost 0.7% on the week.

US payrolls added 223,000 new jobs in May, pushing the unemployment rate down to an 18-year low of 3.8%. The gains were broadly-based in retailing, manufacturing, construction, and healthcare. Wage-growth was steady if not spectacular at 0.3%.

Separately, the ISM reported manufacturing rose 1.4% in May to a two-month high, signaling solid momentum. However, purchase managers voiced concerns that tariffs and labor shortages may impeded future growth.

The dollar added 0.2% against major rivals as speculation grew that the Fed will raise interest rates in June. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

The Atlanta Fed raised its forecast for GDP growth in the second quarter to 4.7%, well above Q1's tepid 2.3% rise. But recent vigor in the economy does not guarantee four rate hikes this year, according to MarketWatch, given growing trade-war worries and political instability in the Eurozone. CME FedWatch places the odds of a fourth hike in 2018 at 38% following the jobs report, up from less than 20% yesterday.

The other precious metals were mixed on the day and week. Silver dipped 0.1% for a weekly decline of 0.6%. Platinum dropped 0.4% but still gained 0.6% this week. Palladium rose 1.5% today and 2% this week.

At the Comex close: August gold slid $5.40 to $1,299.30; July silver dipped 2 cents to $16.44; July platinum dropped $3.40 to $906.70; and September palladium rose $14.90 to $996.60 an ounce.