Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1% to close under $3,296 after upbeat US economic data increased expectations that the Fed will delay cutting interest rates, boosting the dollar and Treasury yields while undercutting alternative stores of value. Silver shed 1.3% to finish at $37.57 an ounce.

The economy grew 3% in the second quarter, according to Commerce Department data, signaling resilience despite the turbulence caused by volatile trade policies. The solid headline number was inflated by sharply reduced imports as the result of the highest tariffs since the 1930s.

ADP reported private payrolls grew by 104,000 jobs in July, more than forecast, as the easing of trade wars gave employers more confidence to hire additional workers. ADP payrolls declined by 23,000 in June.

Against this backdrop, the Fed left interest rates unchanged at the end of its two-day meeting on policy, a decision that was widely expected despite extreme pressure from President Trump to cut rates heavily. For the first time since 1993, two Fed Governors, Trump appointees in line to replace Chairman Powell, dissented from the Fed's decision.

The dollar rallied 1% against major rivals as traders speculated that the solid economic data may reinforce the Fed's wait-and-see posture before cutting rates. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

Benchmark 10-year Treasury yields also rose, pressuring gold by increasing the opportunity cost for holding the non-yielding asset instead of bonds.

Platinum and palladium fell 2.8% and 2.9%, respectively.

At the New York spot close: gold lost $32.95 to $3,295.80; silver dropped 51 cents to $37.57; platinum shed $39.65 to $1,360.70; and palladium slid $36.80 to $1,22275 an ounce.