Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold added another 0.4% to close at $1,973 as a fresh round of soft US economic data weakened yields and the dollar, boosting alternative stores of value. It was the metal's third straight day of gains and highest finish in nearly a month.

US GDP was revised down to 2.1% in the second quarter from the 2.4% initially reported. While anything above 2% is generally considered above-target growth, the downward revision suggests the Fed's goal of lowering inflation by slowing the economy may be starting to bear fruit.

The US trade deficit widened 2.6% in July as Americans bought more imported goods. A growing trade deficit is considered a drag on GDP.

ADP reported private payrolls added 177,000 new jobs in August, fewer than forecast and well under the revised 371,000 created in July. The more authoritative nonfarm payrolls report due Friday is expected to be even weaker, with consensus forecasts of 170,000.

Benchmark 10-year Treasury yields dropped to a three-week low under 4.1% as traders speculated that the weaker data reduces the likelihood of a September rate hike. CME FedWatch sees a 90% chance that the Fed will take no action in September, up from 86% yesterday.

Falling Treasury yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar fell 0.5% to a two-week low against major rivals on the weaker data and shifting Fed outlook. A weaker dollar helps gold by making it less expensive in other currencies.

The other precious metals were lower, with silver slipping 0.1% while platinum and palladium dropped 0.1% and 2.2%, respectively.

At the Comex close: December gold gained $7.90 to 1,973; December silver slid 4 cents to $25.10; October platinum dropped $2.80 to $983.30; and December palladium lost $28.20 to $1,229 an ounce.