Gold fell for the first time in six days as the U.S. dollar regained strength against other world currencies. Silver and platinum followed the yellow metal’s decline. Crude-oil and U.S. stocks, however, rallied following data showing better than expected consumer confidence numbers.
In New York trading futures for bullion:
Silver for July delivery declined 9.5 cents, or 0.6 percent, to $14.60 an ounce.
Gold for June lost $5.60, or 0.6 percent, to $953.30 an ounce.
- July platinum fell $20.20, or 1.7 percent, to $1,139.80 an ounce.
"Sharply rising consumer confidence numbers were a boon for at least the stock market," wrote Jon Nadler, Sr. analyst at Kitco.com. "At the end of the day, such figures may have also helped gold recover from the $940s, seen overnight."
The Conference Board’s U.S. Consumer Confidence Index rose to a better than expected 54.9 in May from 40.8 in April. It was the biggest monthly jump in six years, according to Reuters.
In spot bullion, the benchmark London gold fix price fell $14.75 to $945.00 an ounce. Silver lost 36 cents to $14.30 an ounce. Platinum was fixed $21.00 lower to $1,128.00.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.
Oil and gasoline prices
New York crude-oil for July delivery jumped 78 cents, or 1.3 percent, to $62.45 a barrel. The national average for unleaded gasoline rose one-tenth of a cent to $2.425 a gallon, according to AAA. The price is 11.1 cents higher than a week ago and 37 cents higher than last month.
Consumer confidence data inspired investors to buy stocks. The Dow Jones industrial average gained 196.17 points, or 2.37 percent, to 8,473.49. The S&P 500 Index rose 23.33 points, or 2.63 percent, at 910.33. The Nasdaq Composite Index climbed 58.42 points, or 3.45 percent, at 1,750.43.