Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Extending last week's 2.6% rise, gold added 0.2% to close near $1,360 as a new round of soft U.S. economic data spurred safe-haven demand.

U.S. factory activity slipped July, according to the institute of Supply Management, as new orders, employment, and exports all faltered in the wake of the strong dollar and softening demand overseas. In a separate report, the Commerce Department said construction spending fell in June to its lowest level in 12 months, marking three straight months of declines.

The soft data follows last week's shocking GDP report showing that the U.S. economy expanded by merely 1.2% in the second quarter, less than half of most forecasts and barely more than Q1's anemic 0.8%. Gold jumped 1.2% on the GDP released to close 3% higher in July, for its six monthly increase this year.

Traders speculate that the Fed will be disinclined to raise rates until next year because of the slowdowns in the U.S. and other economies, especially with fallout from Brexit still to come. The Fed fund futures market sees just a 31% chance of a hike in December, according to CME FedWatch, down from better than 50% a week ago.

The other precious metals also finished higher. Platinum and palladium added 1.2% and 1.3%, respectively, silver added 1.6% to close at a two-year high of $20.60.

At the Comex close: December gold gained $2.10 to $1,359.60; September silver climbed 25 cents to $20.60; October platinum added $13.90 to $1,164.70; and September palladium added $9.30, to $719.10 an ounce.