Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% to close just over $1,306 on data indicating that U.S. wholesale prices rose a scant 0.1% in July, reducing demand for inflation hedges. After dropping as low as $1,293 in intraday trade, the metal rebounded strongly on reignited tensions in the Ukraine, reaching as high as $1,311 before settling back at the close. Treasury prices surged on the Ukraine reports as investors sought safety.

One day after Russia's Putin spoke of de-escalating the crisis, the Ukrainian military detected and partially destroyed a column of 20 armored vehicles surreptitiously crossing the border in what NATO's secretary-general called an "incursion" that "clearly demonstrates" Russia's military support of the insurgency. The episode occurred near the 260-truck Russian convoy of "humanitarian aid" that has been stopped for inspection, adding to concerns that it is a prelude to outright invasion.

Equity markets edged down slightly, succumbing to Ukraine worries at the close after conflicting U.S. economic data caused both optimism and pessimism during the trading session. Consumer sentiment hit a nine-month low in August on growing worries about stagnant wages. Meanwhile, U.S. manufacturing rose broadly in July, with auto manufacturing reaching its highest level in five years, although factory output in the New York Fed region rolled back in August.

Gold finished the week 0.4% lower. The other precious metals were mixed on the day and week. Silver dropped nearly 2% for the day and week. Platinum fell 0.8% today and 1.4% this week. Palladium gained 1% for the day and 3.6% this week, aided by supply concerns and rising auto production.

At the Comex close: December gold fell $9.50 to $1,306.20; September silver dropped 37 cents to $19.53; October platinum shed $11.80 to $1,457.40; and September palladium gained $8.60 to $894.75.