Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.4% to close just above $1,088 as improving U.S. economic growth boosted the dollar, weighing on alternative stores of value.

GDP increased at an annual rate of 2.3% during the second quarter of the year, the Commerce Department reported today, driven by a rise in consumer spending on big purchases like cars and trucks. Gains in the housing market also helped.

First-quarter GDP was revised upward from negative 0.2% to positive 0.6%, largely because of a change in reporting methodology that reduces seasonal fluctuations based on military and health care spending. Growth from 2012 to 2014 was revised downward from 2.3% to 2%.

Not everything was positive in the data, however. Business investment was soft again, as spending on equipment dropped 4.1% and the value of inventories fell. The strong dollar and ongoing weakness in the global economy are weighing on exports, hurting manufacturers and making many businesses loath to spend.

The dollar rallied on the GDP report as traders speculate that it will further encourage the Fed to raise rates this year, perhaps as early as September. A rising dollar weighs on gold and other commodities by making the more expensive to foreign buyers.

The other precious metals were mixed, with silver slipping 0.3% while platinum and palladium gained 0.5% and 0.8%, respectively.

At the Comex close: August gold slid $4.20 to $1,088.40; September silver slipped nearly 5 cents to $14.70; October platinum added $5, to $989.90; and September palladium rose by $4.95 to $620.55 an ounce.