Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.4% to close at a two-month low above $1,311 after upbeat jobs data lifted the odds of a September rate hike from the Fed. The metal fell 3.4% in August for its first monthly loss since May.

ADP reported 177,000 new private-sector jobs were added to the economy in August, in line with forecasts. The services sector accounted for all of the increase, with construction jobs decreasing and manufacturing unchanged. July's totals were revised to 194,000, up from the 179,000 originally reported. The government's nonfarm payrolls report, due Friday, is considered the more authoritative measure of labor market health.

The dollar rose against most rivals after the ADP data as traders speculated that the Federal Reserve may be more inclined to raise interest rates soon. CME FedWatch registers a 27% chance of a September hike, up from 24% yesterday. Higher rates boosts the dollar by attracting foreign exchange investment in search of higher yield. A stronger dollar weighs on gold and other commodities priced in it by making them more expensive in other currencies.

The other precious were mixed on the day but stronger lower for the month. Silver added 0.2% today but lost 8.1% in August. Platinum fell 0.3% today and 8.4% this month. Palladium lost 1.2% on the day and 5.6% on the month.

At the Comex close: December gold dropped $5.10 to $1,311.40; December silver added 3 cents, to $18.71; October platinum slid $3.10 to $1,053.50; December palladium lost $8.25 to $669.95 an ounce.