Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% to close under $1,266 despite a softer dollar and mixed economic data as traders took profits from last week's 1.1% rise and three straight weekly wins.

Consumer confidence dropped in May for a second straight month as optimism over Trump administration proposals to boost the economy has given way to uncertainty over the ability of Congress to pass healthcare reform, tax cuts, and a promised package of infrastructure programs. Consumer spending rose 0.4% in May, however, supported by a matching rise in incomes

Oil prices fell 1%, pressuring gold, as higher output from Libya raised questions about whether OPEC and other produces will cut production enough to reduce the global supply glut. Gold often trades in sympathy with soul as a hedge against energy-related inflation.

Fed Governor Lael Brianard said today that while the "further removal of accommodation" is likely to come soon, weak inflation over the past few months may cause the central bank to reassess the pace of future rate hikes. Government data released today showed the rate of inflation over past 12 months falling in April to 1.7%, well under the Fed's target 2% and down from February's 2.1%.

The dollar fell 0.3% against major rivals led by the euro and UK pound. Typically, a softer dollar would support higher gold prices by making the metal less expensive overseas.

The other precious metals were mixed, with silver and palladium adding 0.6% and 2%, respectively, while platinum dropped 2.3%.

At the Comex close: August gold slipped $5.70 to $1,265.70; July silver gained 10 cents to $17.43; July platinum lost $21.80 to $941.10; and September palladium jumped $15.95 to $802.65 an ounce.