Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained for a fourth straight session, adding another 0.6% to close above $1,794, as soft data and falling equities boosted demand for safe-haven assets. The metal reached an intraday high near $1,816 before slipping back on profit-taking.

The ISM reported the massive US services sector cooled in June as businesses were unable to find enough supplies or workers to keep pace with demand. The data showed solid growth but fell short of forecasts, adding to concerns that GDP could slow in the second quarter from its torrid 6.4% growth in Q1.

The Dow fell 0.7% and the S&P 500 dropped by half as much as investors digested the disappointing ISM report. The tech-heavy Nasdaq was little changed.

Bonds rallied alongside gold on flights to safety, pushing benchmark 10-year Treasury yields down to 1.36%, the lowest level since February. Falling yields support gold by reducing the opportunity cost for owning it instead of bonds as a safe-haven asset.

Capping gold's gains, the dollar picked up 0.4% against major rivals led by the euro, which tumbled on disappointing data. Investor sentiment in Germany, the Europe's biggest economy, fell sharply in the July reading while orders for German-made slumped.

A rising dollar makes gold and other commodities more expensive in other currencies, undercutting demand overseas.

The other precious metals were mixed, with silver and platinum sliding 1.2% and 0.3%, respectively, while palladium added 0.1%.

At the Comex close: August gold gained $10.90 to $1,794.20; September silver lost 33 cents to $26.17; October platinum dropped $3.70 to $1,084; and September palladium picked up $3.60 to $2,796.10 an ounce.