Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Rising for the fifth straight session, gold gained 0.3% to close at $1,245.50 as a weaker dollar and mixed economic data boosted demand for alternative assets. The higher close marks the metals longest winning streak since mid May.

The dollar dumped 0.5% against major rivals, including a 1% tumble against the euro, as traders speculated that the ECB will begin to taper stimulus toward the end of the year. A falling dollar supports gold and other commodities priced in it for international trade by making them less expensive to buyers using other currencies.

Mixed economic data also weighed on the buck as the Philadelphia Fed region reported manufacturing growth fell to the slowest levels of the year. The soft data comes one day after a similar report from the New York Fed region.

On the positive side, the Conference Board's Leading Economic Index picked up 0.6% in June, offering hope of stronger growth in the second half of the year. The rise was led by a strong upsurge in permits for new housing construction. However, data released yesterday showed homebuilder sentiment felll to an eight-month low in July, perhaps negating the momentum behind the LEI data.

The other precious metals were mostly higher, with silver and platinum rising 0.3% and 1%, respectively, while palladium lost 1.3%.

At the Comex close: August gold gained $3.50 to $1,245.50; September silver added 5 cents, to $16.35; October platinum rose $9 to $933.20; and September palladium dropped $11.55 to $847.60 an ounce.