Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rallied 1.2% to close at a new all-time high near $3,474 after moderate inflation data reinforced the outlook for coming rate cuts from the Fed, pressuring the dollar and lifting alternative stores of value. Bullion gained 5.5% for the month, its best since April. Silver surged 2.6% to $40.20 an ounce for whopping 10% rise in August.

The Personal Consumption Expenditures index showed inflation rising 0.2% in August, in line with expectations, for an annualized inflation rate of 2.6%. The Fed's preferred inflation gauge, the so-called core PCE factoring out food and energy, rose 0.3% for 12-month rate of 2.9%.

While the elevated annualized core rate, the highest since February, suggests tariff inflation is beginning to take root, the overall inflation picture is benign enough for the Fed to begin cutting interest rates in September�proved the next payrolls report is not abysmal.

Fed fund futures traders now see an 88% likelihood of a quarter-point reduction later this month, followed by at least one more by December.

The dollar fell 0.2% against major rivals on the dovish rates view, posting a 2% decline for the month. A falling dollar lifts gold and other commodities by making them less expensive overseas.

Platinum picked up 1.1% for the day and 6.6% for the month. Palladium added 0.1% for a monthly loss of 0.7%.

At the New York spot close: gold rallied $41.90 to $3,473.70; silver surged $1.01 to $40.20; platinum picked up $15.25 to $1,371.65; and palladium added 65 cents, to $1,105.25 an ounce.