Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.6% to close above $3,328 on safe-haven inflows as Treasury yields retreated ahead of the Fed's meeting on monetary policy and the uncertain outcome of trade talks with China. Silver added 0.2% to $38.08 an ounce.

Top US and China representatives met for a second day in Stockholm, attempting resolve fundamental economic disputes and avert a damaging trade war. While hoping for a 90-day extension in the current tariff truce, traders hedged against negative outcomes with gold and Treasurys.

Risk appetite on Wall Street, whetting recently by the EU and Japan trade agreements, was dulled today by China uncertainty, mixed US data, and softer-than-expected corporate earnings.

US housing prices grew by the smallest percentage in nearly two years behind high mortgage rates and increasing affordability. Consumer confidence ticked slightly higher in July, lifted by higher stock prices and easing inflation, but economic expectations remained pessimistic.

The Fed began its two-day meeting on monetary policy amid widespread expectations that it will hold interest rates unchanged despite near-constant pressure from the Whie House to cut rates. Fed fund traders project cuts of 50 basis points later this year, beginning in October.

Benchmark 10-year Treasury yields slipped under 4.4% as investors sought the perceived safety of government debt. Falling yields boost gold by lowering the opportunity costs for holding it instead of bonds.

Platinum and palladium rose 0.8% and 1.1%, respectively.

At the New York spot close: gold gained $18.45 to $3,328.75; silver added 6 cents, to $38.08; platinum picked up $11.55 to $1,400.75; and palladi8um rose $13.65 to %1,259.55 an ounce.