Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down 0.3% to close above $1,491 as traders took profits, and comments from Fed officials clouded the outlook for an October rate cut. The metal still notched a weekly rise of 0.4%.

Federal Reserve Vice Chairman Richard Clarida was upbeat on the economy in a speech today, saying he sees no evidence that recession risks are elevated, or that consumer spending, the engine of the economy, is likely to dry up. Dallas Fed President Robert Kaplan said he is "agnostic" about another rate reduction, while Esther George of the Kansas City Fed signaled that she will argue against a cut when Fed meets again in two weeks.

Lower rates weaken the dollar by making it less attractive to foreign exchange traders seeking higher yields. A weaker dollar typically supports gold and other commodities by making them less expensive in other currencies.

Cautious optimism about a Brexit deal also weighed on safe-haven appeal. British PM Boris Johnson obtained a surprise agreement this week from the EU on a way prevent, or at least postpone, a damaging "hard Brexit."

The UK will leave the bloc at the end of the month, as scheduled, but continue to operate under EU rules until the end of 2020. In the meantime, negotiators will work toward new set of trade regulations. The pending deal still needs approval from Parliament.

Gold's slide was backstopped by soft data. The Conference Board's leading economic indicators fell in September for the second straight month, primarily because of weakness in the manufacturing sector resulting from trade conflicts. Meanwhile, China's growth fell to a 27-year low of 6% in the third quarter, also weighed down by trade.

The other precious metals were mixed for the day and week. Silver dipped 0.2% but ended the week 0.2% higher. Platinum added 0.3% today but lost 0.5% this week. Palladium fell 0.8% but still gained 2.8% for the week.

At the Comex close: December gold fell $4.20 to $1,494.10; December silver dropped 3 cents to $17.58; January platinum $2.90 to $895.90; December palladium lost $13.10 to $1,716.90 an ounce.