Gold News & Info

Source: Marketwatch

San Francisco— Gold futures posted a modest gain Tuesday, recovering from an earlier decline as another round of weak U.S. data boosted concerns about economic growth and helped dampen the dollar. Gold for August delivery closed up 60 cents to $886.90 an ounce on the New York Mercantile Exchange. It touched a low of $876.70 earlier in the session.

"It's true that some of the recent economic data are pointing toward a slowing economy, and some are predicting that the resulting lower consumption will act as a drag on the price of gold and other commodities," said Brien Lundin, editor of Gold Newsletter. "But inflation is first and foremost a monetary phenomenon, and the market is now recognizing that the Federal Reserve will be unable to fully launch a tight-money campaign while the economy remains so weak — and during an election year," he said in emailed comments. "The surprising rise in the Producer Price Index, the fall in housing starts and the expansion in the current account are all, on balance, bullish for gold," he said. See full story.