Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rebounded 0.6% to close above $2,453 as bargain-hunters swept in after yesterdays overdone liquidation. The rise came despite gains in Treasury yields and the dollar driven by mixed but net-positive US economic data. The metal had fallen 1.1% on Wednesday after a mild uptick in consumer inflation undercut hopes for an outsized rate cut in September. Silver surged a whopping 4% today, finishing at 28.34 an ounce.

US retail sales jumped 1% in July, more than tripling most forecasts for the biggest gain in 18 months. Most of the rise came from a rebound in car sales, however, which had plunged in June on a nationwide cyberattack. With auto sales removed, the gain was a more modest 0.4%.

First-time jobless claims fell by 7,000 to 227,000 last week, a five-week low, raising hopes that the abysmal July payrolls data was a one-off. The economy added merely 114,000 jobs last month, according to the governments nonfarm payrolls report, lifting the unemployment rate to 4.3%.

On the negative side of the ledger, US industrial output fell 0.6% last month for the first decline in four months. And two key regional factory gauges, the New York Empire State and the Philadelphia Fed indexes, fell sharply in August.

Benchmark 10-year Treasury yields rose back toward 4% as traders saw the upbeat retail sales data reducing the chances of recession and therefore a big rate cut from the Fed. CME FedWatch still puts the odds of a quarter-point cut in September at 100% while the chance of a half-point hike has fallen to around 25%.

Tracking with yields the dollar added 0.4% against major rivals, limiting golds gains by making it pricier overseas.

Platinum and aladi8um climbed 3.8% and 1.5%, respectively.

At the New York spot close: gold gained $13.70 to $2,453.10; silver surged $1.09 to $28.34; platinum picked up $35.50 to $965.10; and palladium rose $14.20 to $936.90 an ounce.