Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold climbed 0.8%, closing at three-week high near $1,232, as concerns about slowing global growth raised speculation that the Fed will delay increasing interest rates, spurring safe-haven demand for the metal as an alternative store of value.

Speaking at the IMF's annual meeting in Washington over the weekend, Fed Vice Chair Stanley Fischer said slowing worldwide growth "could lead the Fed to remove accommodation more slowly." Charles Evans of the Chicago Fed said separately today that the global slowdown may warrant interest rates staying near zero until the first quarter of 2016, far longer than the mid-2015 start to tightening widely expected by the markets.

Treasurys rose on the apparent shift in Fed disposition while the dollar fell, supporting demand for gold and other commodities denominated in it for international trade by making them less expensive to foreign buyers. U.S. equities fell sharply again, with the Dow surrendering 1.3% and the S&P 500 losing1.5%.

The other precious metals were mixed. Silver gained 0.4% and palladium added 0.2% while platinum dropped 1.3% on reports that vehicle sales in China plunged to a 19-month low. Platinum is widely used in auto catalytic converters.

At the Comex close: December gold gained $8.30 to $1,231.60; December silver picked up seven cents to $17.37; October platinum dropped $17.30 to $1,261; and December palladium added $1.45 to &786.50 an ounce.