Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close above $1,419 as slowing GDP growth and mildly higher inflation boosted demand for alternative assets. The metal ended the week down 0.5%.

The Commerce Department reported GDP growth slowed to 2.1% in the second quarter, dragged lower by a sharp decline in business investment. Consumer spending was especially strong, posting an increase of 4.3%.

Inflation remained subdued during Q2, leaving the Federal Reserve room to cut interest rates next week. The Fed's preferred measure of inflation, the so-called core PCE index, ticked up slightly to 1.8% but remained shy of the target 2%.

The Atlanta Fed said yesterday that real GDP growth, adjusted for inflation, will print around 1.3%.

The Fed's rate view was little-changed by the data, according the Fed-funds futures trading, with a quarter-point reduction almost universally expected next week. Lower rates would likely undermine the dollar by making it less attractive to foreign exchange investors seeking yield. A weaker dollar, in turn, would support gold and other commodities priced in dollars for global trade by making them less expensive in other currencies.

The other precious metals were lower for the day but higher for the week. Silver dipped a penny but still rose 1.2% this week. Platinum fell 0.7% for a weekly rise of 1.8%. Palladium slipped 0.2% today but gained 1.5% this week.

At the Comex close: August gold rose $4.60 to $1,419.30; September silver dipped a cent to $16.40; October platinum lost $6.20 to $867.80; and September palladium shed $2.90 to $1,531 an ounce.