Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold finished nearly unchanged, dipping 40 cents to hold at $1,121, as expectations for new stimulus in China stoked risk appetite, boosting stocks and reducing demand for safe havens.

China's exports fell 5.5% in August after dropping 8.3% in July, according to official reports, and face substantial headwinds in the fourth quarter because of slowing global growth. Following reprots of weaker industrial production, factory activity, and domestic consumption, the new data is more evidence of serious stumbling by the world's second-largest economy, causing traders to speculate that the PBOC will intervene to provide more stimulus.

Equity markets jumped on expectations of further easing from Beijing, with all three major U.S. indexes gaining more than 2.5% while the Global Dow rose 1.8%. The dollar index fell slightly against major rivals.

Gold continues to be stifled by uncertainty over the direction of interest rates when the Fed meets next week. Weighing slower global growth and worries about deflation against relatively stronger U.S. economic data, the central bankers seem evenly split on whether to nudge rates higher this month or wait until later in the year. Higher rates tend to strengthen the dollar, weighing in turn on gold and other commodities denominated in it for international trade.

The other precious finished sharply higher, with silver gaining 1.4% while platinum and palladium added 1.1% and 1.6%, respectively.

At the Comex close: December dipped 40 cents to $1,121; December silver gained 21 cents, or $14.76; October platinum picked up $10.50 to $1,002.90; and December palladium added $9.40, to $586.55 an ounce.