Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.5% to close near $1,935 as yields and the dollar rose on unexpectedly strong US retail sales and some hawkish talk from a prominent Fed official. It was the metal's seventh straight losing session and lowest finish in more than a month.

Sales at US retailers increased 0.7% last month, the biggest gain in six months, boosted by strong online sales. Considered a bellweather for the strength of the economy, retail sales constitute around 30% of consumer spending, which in turn comprises roughly two-thirds of GDP.

The manufacturing sector's struggles continue, however, as New York's Empire State factory gauge fell back into contraction for the first time since May.

Benchmark 10-year Treasury yields climbed above 4.2% after the retailing data as traders speculated that residual momentum in the economy could induce the Fed to continue raising interest rates. Higher rates mean higher bond yields, which pressure gold by increasing the opportunity cost for holding it instead of bonds for safety.

Adding to rate-view wariness, Minneapolis Federal Reserve President Neel Kashkari said today that inflation is "still too high" and he's "not ready to say that we're done" with rate hikes.

The dollar also crept slightly higher after the yuan fell on surprising easing measures from China's central bank. Responding to slower growth and a struggling real estate sector, the PBOC injected $55 billion of liquidity and cut several key interest rates.

The other precious metals were also lower, with silver slipping 0.2% while platinum and palladium dropped 1.6% and 2.7%, respectively.

At the Comex close: December gold lost $8.80 to $ 1,935.20; September silver shed 5 cents to $22.66; October platinum lost $14.60 to $892.20; and September palladium declined by $34.30 to $1,238.60 an ounce.