Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close above $1,166, recouping Friday's losses as a softer dollar and weak U.S. housing data boosted safe-haven demand.

New home sales plunged 11.5% in September to the lowest level in ten months and August totals were revised lower, according to Commerce Department data released today. While year-over-year sales remain up 2%, the sizeable drop raises questions about the sustainability of gains in this heretofore bright spot in the economy.

The data follows a series of disappointing reports in recent weeks on job growth, manufacturing, and consumer spending. Taken together, they signal much slower growth in the third quarter, something the Fed will no doubt consider when it meets this week on monetary policy.

The dollar fell from a 10-week high against a basket of rivals, pressured by housing data and speculation that the Fed is unlikely to raise interest rates until next year. A falling dollar supports gold and other commodities denominated in it for international trade by making them less expensive to buyers overseas.

Up 8% since July, gold pushed through its 200-day moving average last week for the first time since May, on track for its second-best month this year. Its bullish action is catching the attention of hedge funds and big money managers. CFTC data on gold futures show net-long positions have risen to the highest level since February. SPDR Gold Fund, the largest bullion ETF, has attracted nearly $1 billion in inflows since August, according to Reuters.

The other precious metals were mixed, with silver rising 0. 5% while platinum and palladium fell 0.4% and 1.4%, respectively,

At the Comex close: December gold gained $3.40 to $1,166.20; December silver added 8 cents, to $15.91; January platinum dropped $4.20 to $997.50; and December palladium lost $9.95 to $683.90 an ounce.