Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped another 0.4% to close under $1,127 as upbeat U.S. consumer confidence bolstered the dollar and diminished appetite for alternative stores of value.

The Commerce Department reported that consumer confidence picked up in September to the highest level since January and second-highest since 2007. Despite slower global growth and rising stock market volatility, shoppers are feeling more comfortable because of low interest rates, a better job market, and falling gasoline prices.

The dollar strengthened against major rivals after the upbeat consumer data, helped by a report from Germany that consumer inflation there is at zero, boosting the likelihood of additional quantitative easing in the Eurozone. ECB President Mario Draghi said last week that the central bank stands ready to boost easing if the inflation outlook deteriorates. Tantamount to printing money, QE will further weaken the euro and caused traders to bid up other currencies, like the dollar, that promise better yield.

The other precious metals were mixed, with silver edging up 0.2% while platinum fell 0.6% and palladium gained 0.9%. Platinum and palladium continued their recent divergence because of the Volkswagen's diesel-emissions scandal. Platinum is used more in diesel engines while palladium is used more in traditional gasoline engines.

At the Comex close: December gold slid $4.90 to $1,126.80; December silver added more than 3 cents to $14.57; October platinum fell $5.40 to $917.10; and December palladium gained $5.85 to $657.70 an ounce.