Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2%, posting its fourth winning session out of five, as positive U.S. economic data increased demand for the metal as an inflation hedge. The ISM services index rose to its highest level in six months in August, showing accelerated growth in services such as banking and health care. And private payrolls added 162,000 jobs last month , according to ADP. While the number was slightly lower than average for 2012, it was higher than expected and offered some hope that the Labor Department's non-farms payrolls report, due out on Friday, may also show some strength. Gold tracked equities higher on the reports and held its gains despite oil losing more than 4% on demand concerns out of Europe and China. The other precious metals also scored modest gains, with silver up 0.1%, platinum 0.4%, and palladium 0.6%.

At the Comex close: December gold gained $4.20 to $1,779.80; December silver added 2 cents to $34.69; January platinum rose $6.90 to $1,694.10; and December palladium picked up $3.70 to $657.90 an ounce.

While the U.S. non-manufacturing sector is showing signs of improvement, China's and Europe's cooled again last month, reducing the prospects for global growth and adding to gold's safe-haven appeal. The softening economic climate in the eurozone and Asia increases the odds that more central banks will follow the Fed's lead on QE3 and undertake deeper easing measures. Australia unexpectedly cut interest rates yesterday to spur growth.

Geopolitical tensions are also supporting gold. Turkey attacked targets inside Syria today in retaliation for a mortar bomb that killed five Turkish civilians. With the Middle East already a flashpoint because of Iran's nuclear ambitions and tensions from the Arab Spring, burgeoning violence between Syria and Turkey is cause for alarm and could push more buyers into safe havens like gold.