Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close just under $1,171 as the dollar weakened, increasing demand for alternative assets.

The ICE Dollar Index, measuring the currency against a basket of rivals, plunged more than 1% today after reports that President Obama told a group of G-7 delegates, meeting in Brussels, that the strength of the dollar "posed a problem." The White House quickly denied the comments, although the Fed has recently echoed this sentiment, saying the strong dollar creates a headwind to growth by making U.S. exports too expensive.

Friday's unexpectedly strong U.S. non-farm payrolls report drove the dollar to a recent high on speculation that improving labor market conditions will encourage the Fed to raise interest rates perhaps as early as September. Obama's reported comments helped to spur traders to take profits from the buck's three-day rally, pulling it lower and boosting gold. U.S. Treasury bonds also rose on safe-haven demand.

CEOs of U.S. corporations lowered their outlook for the economy, according to Business Roundtable's quarterly survey. Most now project growth to be around 2.5% this year, down from 2.8% in the previous survey, and fewer plan to increase sales, investment, and hiring this year.

The other precious metals were mixed, with silver and palladium slipping 0.2% and 0.5%, respectively, while platinum tracked higher with gold by adding 0.5%.

At the Comex close: August gold gained $2.70 to 1,170.80; July silver lost more than 2 cents to $15.96; July platinum added $5.70, to $1,097.70; and September palladium dropped $4 to $746.95 an ounce.