Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell for a fourth session, closing 1% lower at just over $1,115, as better-than-expected data on private payrolls boosted the dollar and eroded demand for alternative stores of value. With a 1.5% loss in September, the metal ended the third quarter 4.8% lower.

ADP reported 200,000 new jobs added by private employers in September, slightly more than consensus forecasts. The solid gains support expectations that this month's U.S. nonfarm payrolls report, due out on Friday, will show improvement over August's disappointing total of 173,000, the smallest in five months.

The dollar rallied against major rivals as traders speculated that the jobs data may incline the Fed to raise interest rates before the year is out. Higher rates support the dollar, weighing on gold and other commodities denominated in it for international trade. The buck shook off PMI reports that factory activity in the Chicago Fed region contracted last month to its lowest point since April. Complicating the Fed's pending decision on rates, all five of the reporting Fed regions have slowed in September.

Gold is now down 5.8% for the year, swept up in an epic sell-off in commodities caused by a much stronger dollar, low inflation, and slower global growth, especially in China, the world's leading consumer of raw materials. The S&P/Goldman Sachs Commodities Index has plunged more than 14% year-to-date and a whopping 37.5% in the last 12 months, while the dollar has risen by around 12.5% in the past year, as measured by the U.S. Dollar Index.

In positive news for gold, appetite for the metal is building again in China and India, the world's two biggest gold consumers. Heading into its season of peak demand, India is on track to import 900 tonnes this year, up from 842 tonnes in 2014. Chinese jewelry demand jumped more than 17% in August compared to a year earlier, while deliveries from the Shanghai Gold Exchange surged 37% year-over-year as investors turn to gold after a rout in China's stock market and the devaluation of the yuan. China's central bank added another 16 tonnes to its gold reserves in August as it continues to diversify its immense currency reserves.

Equities rallied today as bargain-hunters entered the market, with the Dow adding 1.5%. But the index still finished the quarter with a loss of 8.5% and has fallen for three straight quarters for only the third time in the last 40 years.

The other precious metals were also lower for the day and quarter. Silver slid 0.4% today, 0.5% this month, and 6.8% this quarter. Platinum lost 1.1% today, 10% this month, and 16% this quarter. Palladium fell 1% today but gained 8% gain in September as Volkswagen's diesel-emissions scandal shifted consumer sentiment towards gasoline engines, which use the metal in catalytic converters. Year to date, silver is down almost 7% while platinum and palladium are 25% and 18% lower, respectively.

At the Comex close: December gold fell $11.60 to $1,115.20; December silver dropped 5 cents to $14.52; October platinum lost $9.90 to $907.20; and December palladium slid $6.75 to $650.95 an ounce.