Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close above $1,094 as bargain hunters entered the market, lured by ten straight sessions of lower prices.

After rebounding as high $1,105 early in the session, the metal retraced much of those gains following the Labor Department's report that initial jobless claims fell 26,000 last week to 255,000, the lowest level since 1973. With new claims holding under 300,000 since late February, the longest streak in 15 years, the labor markets look increasingly healthy enough to support a rate hike by the Fed, perhaps as soon as September.

The dollar rose against a basket of rivals on the jobless data, overcoming earlier losses. A stronger dollar pressures gold and other commodities denominated in it for international trade by making them more expensive overseas. The IMF warned today that a further rise in the dollar could have damaging spillover effects on developed and emerging economies. The IMF recently called for the Fed to delay any rate increases until 2016.

With gold prices hovering around five-year lows, demand for gold bullion coins is strongly on the upswing. The U.S. Mint has sold more than 125,000 ounces of Gold Eagles so far in July, already the highest monthly total since April 2013.

The other precious metals were mixed on the day. Platinum edged up 0.1% while silver and palladium dropped 0.2% and 1.4%, respectively.

At the Comex close: August gold gained $2.60 to $1,094.10; September silver fell 3 cents to $14.701; October platinum added $1.20, to $981.10; and September palladium dropped $8.90 to $617.85 an ounce.