Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.4% to close above $1,327 as net-positive data lessened demand for safe havens. The metal finished the week 2.3% lower, suffering its first down week since late May. Silver dropped 0.8% today but still managed a weekly rise of 0.3%.

China's economy grew in the second quarter, boosted by massive government spending on infrastructure. The BOE's decision yesterday to hold rates unchanged signaled some confidence in the UK's ability to negotiate its divorce from Europe.

Closer to home, U.S. industrial output surged by the most in 11 months in June, driven by strong auto production. And retail sales rose 0.6% on booming home-and-garden sales and web purchases.

Not all data was positive, though. The bellwether Empire state index softened in July, in what analysts believe could be a sign of coming Brexit fallout for manufacturing. And consumer sentiment dropped to a three-month low, according to the University of Michigan, on Brexit worries.

Consumer inflation ticked up 0.2% in June but remains historically low, with the CPI measuring merely 1% higher over the last 12 months, far below the Fed's target 2%. And real wages fell by 0.2%, the second drop in three months.

The dollar rallied by 0.5%, aided by the net-positive U.S. data and severely weakened yen. The Japanese currency had its worst week against the dollar since 1999 because of expectations that the Bank of Japan will undertake a massive new program of quantitative easing. A stronger dollar tends to pressure gold and other commodities denominated in it for international trade by making them more expensive overseas.

Platinum fell 0.9% today and 0.6% this week. Palladium dipped 0.6% but gained 4.9% this week.

At the Comex close: August gold slid $4.80 to $1,327.40; September silver dropped 16 cents to $20.17; October platinum fell $10.20 to $1,094.40; and September palladium dipped $3.70 to $647.40 an ounce.