Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,967 as the dollar extended its recent rally, pressuring alternative stores of value. The metal posted its third straight weekly win by adding 0.1% for the week.

With little economic data released today, the gold price was driven primarily by the dollar's sharp rise against the yen after the Bank of Japan indicated that it will maintain yield controls when it meets next week. Markets were speculating that the BOJ might lift controls after the nation's core-CPI held at 3.3% in June.

The buck added 0.2% against a basket of major rivals, posting a weekly rise of 1.2%, its best in two months. Much of that rise came yesterday after decreasing jobless claims suggested that the stronger-than-expected labor market could keep US interest rates higher for longer.

Gold rallied this week on the opposite expectation, that falling US consumer and wholesale inflation, coupled with softer retail sales and manufacturing, would convince the Fed to end rate hikes after July.

Falling interest rates weaken the dollar by making it less attractive to Forex traders seeking yield, supporting gold in turn by making it cheaper in other currencies.

Despite the bump this week, the buck's yearly trend remains decided negative, having lost 2.4% year-to-date on the imminent end of the most aggressive rate-hike cycle in 40 years.

Gold has risen 7.6% this year on the combination of the weakening dollar, lower Treasury yields, and demand for safe havens in the face of a possible recession and ongoing geopolitical uncertainty.

The other precious metals were mixed for the day and week. Silver slid 0.4% for a weekly loss of 1.4%. Platinum added 0.8% today but still lost 1.2% this week. Palladium picked up 0.9% for a weekly rise of 1.6%.

At the Comex close: August gold dipped $4.30 to $1,964.40; September silver slid 11 cents to $24.86; October platinum picked up $8.10 to $972.20; and September palladium advanced by $11.20 to $1,286.50 an ounce.