Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 1.1% to close above $1,916 as economic data signaled a slowing US recovery while hopes for a new aid package weighed on the dollar, lifting demand for alternative stores of value. It was the metal's highest close in nearly two weeks.

Consumer spending rose 1% in August as more Americans went to bars, restaurants, and hotels. But the increase was the smallest since the nation reopened in May and June, suggesting a loss of momentum in this crucial segment of the economy, which accounts for nearly 70% of GDP.

Contributing to the slower spending, incomes declined 2.7% as federal aid for the unemployed expired at the end of July, forcing consumers to tap savings.

Manufacturing expanded in September for the fifth month, according to the ISM survey, but also at a slower rate. The index declined for the first time since April and employment continued to contract, but new orders and production were both relatively robust.

The dollar extended its recent slide, dropping 0.2% against major rivals on growing expectations that a new stimulus deal may be reached between the White House and Democrats in the House. Treasury Secretary Steven Mnuchin and Speaker Nancy Pelosi, the primary negotiators, each expressed optimism today that a compromise is near.

Coming atop the earlier $2.3 trillion aid package approved in March and historically accommodative monetary policies from the Federal Reserve, any new stimulus deal would support higher gold prices by increasing the risk of higher inflation and further devaluation of the dollar relative to major rivals.

The other precious metals were mixed with silver rallying 3.2% while platinum and palladium slid 0.4% and 0.1%, respectively.

At the Comex close: December gold jumped $20.80 to $1,916.30; December silver climbed 76 cents to $24.25; January platinum dropped $3.20 to $906; and December palladium dipped $2.30 to $2,328.20 an ounce.