Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% but held above $1,103 as traders trimmed positions ahead of next week's important meeting of the FOMC. The metal fell 1.6% this week for its third straight weekly loss.

Inconsistent U.S data and slower growth overseas are clouding the Fed's pending decision on whether to raise interest rates for the first time since 2006. Solid job growth, better GNP, and rising consumer spending are nudging the central bank toward tightening. Weak inflation, subdued factory production, and rising market volatility at home and abroad, however, argue for further delay.

The Labor Department reported today that U.S. wholesale prices remained flat in August, suggesting little inflationary pressure is building in the economy. This data follows yesterday's report that import prices tumbled 1.8% last month.

Overall wholesale prices over the past 12 months have fallen 0.8%, pulled down by falling energy cost, while so-called "core producer prices" that exclude food and energy are up a scant 0.7% in the past year. The Fed has repeated emphasized inflation its preference for inflation to move toward 2% before tightening monetary policy.

Rising market volatility and heightened concern about slower Chinese growth have combined with lower gold prices to create a huge upsurge in demand for gold coins in the U.S. and Europe. Sales of Gold Eagles by the U.S. Mint tripled in the third quarter to 322,000 ounces, the most since 2013. Year-over-year sales of bullion gold coins rose also tripled in Austria, while the British Royal Mint has sold 50% more gold Sovereigns so far in Q3 than Q2.

The other precious metals were lower for the day and mixed for the week. Silver fell 1% for a weekly loss of 0.3%. Platinum lost 1.7% today and 2.8% this week. Palladium dipped 0.3% today but finished the week 2.4% higher.

At the Comex close: December slipped $6 to $1,103.30; December silver fell 14 cents to $14.51; October platinum lost $16.30 to $964.90; December palladium dipped $1.50 to $591 an ounce.