Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close above $1,822 as Treasury yields fell again on soft manufacturing data, rising Covid concerns, and the Fed's dovish outlook for tapering quantitative easing.

The ISM manufacturing index fell to a six-month low under 60% in July, with new orders and production declining on supply and labor shortages due to the pandemic. Any reading above 50% signals expansion. While expected to be temporary, these shortages are fueling higher inflation and slowing the overall economic recovery.

Also hampered by choked supply lines, China's PMI fell again in July to just above contraction at 50.4.

The ongoing effects of Covid on the global economy contributed the Fed's decision last week to delay the timetable for reducing its bond-buying program known as quantitative easing. With the aggressive Delta variant raging worldwide, and with the labor market still reeling from closures last year, the central bank has deferred any reduction of monetary stimulus for at least a few months.

Fed Governor Lael Brainard said on Friday that the central bank is unlikely to be a position to announce any changes in policy until October, when it hopes to get a handle on "post-pandemic" patterns.

Benchmark 10-year Treasury yields tumbled to a six-month low under 1.15% on the combination of Delta variant worries and the Fed's continuation of QE at $120 billion per month. Falling bond yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar also declined on Fed dovishness, edging down another 0.1% after declining 0.8% last week. A weaker dollar lifts gold and other commodities by making it cheaper in other currencies.

The other precious metals were also higher, with silver adding 0.1% while platinum and palladium climbed 0.8% and 1.1%, respectively.

At the Comex close: December gold rose $5 to $1,822.20; September silver added 3 cents, to $25.58; October platinum picked up $7.90 to $1,056.30; and September palladium climbed $27.90, or 1.1%, to settle at $2,684.10.