Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.9% to close just above $1,324 after an unexpected drop in U.S. jobless claims increased speculation that the Fed may taper quantitative easing in coming months. New claims for unemployment benefits dropped by 5,000 to 305,000 last week, well below forecasts. St. Louis Fed President James Bullard recent said an October taper of the Fed's $85 billion-per-month bond-buying program is contingent on improving jobs data. QE supports higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

The positive jobless news was marginally offset by reports that existing homes sales dropped for the third straight month in August, impeded by rising mortgage rates. The dollar strengthened on October taper bets, pressuring gold and other commodities that are denominated in dollars internationally. Silver fell 0.6% while platinum and palladium dropped 1.2% and 0.3%, respectively.

At the Comex close: December gold fell $12.10 to $1,324.10; December silver slid 12 cents to $21.77; January platinum lost $17.60 to $1,414.70; and December palladium dipped $2.25 to $723.45 an ounce.