Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close at $1,494 after soft US economic data bolstered the case for another interest rate cut from the Fed, weakening the dollar and boosting demand for alternative stores of value.

Retail sales declined for the first time in seven months in September, suggesting struggles elsewhere in the economy are beginning to affect consumers. Comprising roughly 70% of GDP, household spending has largely kept the economy afloat as manufacturing has contracted to near-recession levels and the services sector has also started to slow.

The Fed's Beige Book reported "slight to modest" growth across its 12 regions in September, down from "modest to moderate" in prior months. The US-China trade dispute continues to curtail business activity, with factories starting to lay off workers and agricultural production falling because of Chinese tariffs.

The dollar fell 0.3% against major rivals as traders speculated that the softer data will encourage the Fed to cut interest rates again when in meets later this month. Lower rates pressure the dollar by making it less attractive to Forex traders seeking yield. A weaker dollar, in turn, supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Also lifting gold, crude oil rose 1% on signals that OPEC and Russia will extend production cuts into December. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 0.3% while platinum and palladium rose 0.2% and 2.3%, respectively.

At the Comex close: December gold gained $10.50 to $1,494; December silver added 4 cents, to $17.43; January platinum picked up $1.50 to $890.70; and December palladium jumped $38.40 to $1,735 an ounce.