Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5%, breaking a three-day winning streak to hold above $1,180, as better-than-expected retail sales data boosted the dollar, diminishing demand for alternative assets.

U.S. retail sales rose 1.2% in May, slightly above the forecast 1.1%, suggesting that this crucial part of the economy is poised to recover. Consumer spending, of which retail sales accounts for one-third, comprises nearly 70% of GDP. Separately, U.S. import prices rose 1.3% because of rising fuel costs. Excluding energy, prices remain unchanged.

The dollar ended a three-day losing streak, gaining around 0.4% against a basket of rivals, as the upbeat data fuled speculation that the Fed will increase interact rates this fall, perhaps in September. Rising rates support the dollar by increasing yield on money market accounts, in turn pressuring gold and other commodities denominated in the currency by making them more expensive for foreign buyers.

Gold's losses were checked by reports that the IMF walked out of negotiations with Greece over debt obligations, citing "major differences" with Athens in most areas. The nearly insolvent nation needs an agreement before the end of June to qualify for more aid, otherwise it may default on a $1.8 billion loan repayment to the IMF, a scenario that could push it out of the Eurozone and damage financial markets.

The other precious metals were mostly lower, with platinum and palladium losing 0.9% and 0.1%, respectively, while silver remained virtually flat for the third straight session.

At the Comex close: August gold slid $6.20 to $1,180.40; July silver finished unchanged at $15.96; July platinum dropped $10 to $1,105.20; September palladium dipped 65 cents to $742.85 an ounce.