Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained another 0.4% to close at a fresh all-time high near $2,670 despite upbeat US data as rate-cut momentum, a weaker #dollar, and safe-haven inflows pushed the rally to seven straight sessions. Silver jumped 1% to finish at $32.03 after hitting an intraday price of $32.53, the highest in 12 years.

The government confirmed the economy grew 3% in the second quarter, in line with previous reports, and appears to be set for similar growth in Q3. Consumer spending, which accounts for 70% of GDP, ticked down from 2.9% to 2.8%, while government spending rose to 3.1% from the 2.7% originally reported.

Durable-goods orders were flat in August, but this was considered good news, as economists had forecast a decline of 3%. The Fed's pivot toward lowering interest rates is expected to benefit manufacturing and business investment as the cost of money decreases.

First-time jobless claims sank to a four-month low of 218,000 last week suggesting that companies are resisting laying off workers despite a shortage of job openings.

Benchmark 10-year Treasury yields rose to a three-week high as the upbeat data kindled risk appetite, pulling money from bonds into equities. All three major US stock indexes rose 0.4% or more.

The dollar fell 0.4% against major rivals led by the Swiss franc and the Swiss National Bank cut interest rates by a quarter-point. A weaker dollar boosts gold and other commodities by making them cheaper in other currencies.

Gold continues to ride the Fed's dovish pivot to lower interest rates. Fed fund futures now see a full 200 basis points in cuts, including the 50 from last week, by next September.

In addition, the aggressive escalation in violence between Israel and Hezbollah, atop the conflicts in Gaza and Ukraine, are driving demand for the metal as a safe haven.

Platinum and palladium picked up 2% and 1.2%, respectively.

At the New York spot close: gold gained $10.70 to $2.669.09; silver rose 33 cents to $32.03; platinum climbed $19.70 to $1,011.40; and palladium added $12,80, to $1,051.20 an ounce.