Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 1.5% to close above $1,778 after plunging consumer sentiment data hammered bond yields and the dollar, stoking demand for safe havens. The metal gained 0.9% for the week.

The University of Michigan consumer sentiment index fell to 70.2 in August, the lowest level in a decade and below any other reading during the pandemic. Driven by the aggressive spread of the delta variant, the 11-point plummet in outlook from July's 81.2 reading was the seventh largest in the survey's 69-year history.

Benchmark 10-year Treasury yields tumbled to 1.3% as investors, worried about the resurgent pandemic, piled into the safety of government bonds. Falling yields support gold by reducing the opportunity cost for holding the metal instead of bonds as a safe-haven asset.

Also pressuring yields, US import prices rose by the smallest amount since last November. Coupled with the soft CPI print released on Wednesday, the import data suggest inflation may be moderating in the near term, reducing pressure on the Fed to roll back monetary stimulus prematurely.

The dollar fell 0.6% against major rivals, also on speculation that the Fed's easy money policies will remain unchanged for longer. A weaker dollar lifts gold and other commodities by making them less expensive overseas.

The gold price was further supported by strong physical buying in India and China, the world's biggest gold consumers, where aggressive demand boosted premiums to multi-month highs.

The other precious metals were higher for the day and mixed for the week. Silver surged 2.9% but still lost 2% this week. Platinum added 0.8% for a weekly rise of 5.8%. Palladium gained 1.2% to pull out a weekly increase of 1%.

At the Comex close: December gold jumped $26.40 to $1,778.20; September silver climbed 66 cents to $23.78; October platinum picked up $8.30 to $1,026; and September palladium rose $32.60 to $2,656.50 an ounce.