Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.2% to close under $1,946 after robust US economic data rallied bond yields and the dollar, undercutting alternative stores of value. It was the metal's lowest finish in two weeks.

US GDP rose 2.4% in the second quarter, handily beating forecasts of 2% and suggesting that the economy is more resilient than many expected. Consumer spending, the primary driver of growth, increased by 1.6%, down from 4.2% in Q1, while government spending rose 2.6%.

Separately, orders for durable goods surged 4.7% in June behind a massive increase in Boeing orders for new aircraft. Excluding transportation, orders rose a more modest 0.6%. A key measure of business investment, so-called core orders, added 0.2%.

First-time jobless claims fell 7,000 to 221,000 last week, the lowest level since February. The third straight week of declines signaled that the labor market remains tight after a period of loosening late in Q2.

And the beleaguered housing market is also making a comeback. Pending home sales rose 0.3% in June for the first uptick in four months, prompting economist Lawrence Yun of the National Association of Realtors to declare "the housing recession is over."

The confluence of upbeat economic reports prompted a mini sell-off in bonds, jacking the 10-year Treasury yield back above 4%. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked higher with yields, rising 0.9% against major rivals. A stronger dollar pressures gold and other commodities by making them pricier in other currencies.

The other precious metals were also sharply lower, with silver sliding 2.4% while platinum and palladium lost 2.8% and 1.5%, respectively.

At the Comex close: August gold dropped $24.40 to $1,945.70; September silver slid 60 cents to $24.37; October platinum shed $27 to $945; and September palladium declined $19.30 to $1,236.6 an ounce.