Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.6% to just over $1,262 after a surprise cut in interest rates and promise of more easing by the ECB sparked a rally in the dollar and diminished demand for alternative stores of value.

The metal initially rallied as high as 1,279 on the inflationary potential of Europe's rate cut and looser monetary policies but fell back when the dollar jumped to a 14-month high against the euro in the wake of the ECB policy shift. A stronger dollar typically pressures commodities denominated in it for international trade by making them more expensive to holders of other currencies.

Generally positive U.S. economic data also weighed on safe havens. While a gauge of activity in service industries rose at the fastest pace in six years, ADP reported that private-sector hiring slowed slightly in August, and the Labor Department said initial jobless claims rose last week.

The other precious metals were mixed. Silver fell 0.6% with gold and platinum fell 0.5% while palladium was the outlier for a second day, rising 1.4% on supply deficits. December gold fell $8 to $1,262; September silver dropped 12 cents to $18.99; October platinum slid $6.80 to $1,405.70; and December palladium gained $12.25 to $888.20.