Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.5% to close under $1,103 after solid U.S. retail sales data boosted stocks and the dollar ahead of this week's decision on interest rates by the Fed, diminishing demand for alternative assets.

The Commerce Department reported healthy consumer spending over the last two months, with core retail sales increasing 0.4% in August after being revised upward to 0.6% in July. With consumer spending accounting for around 70% of GDP, the upbeat data could nudge the Fed in the direction of rate hike at the policy meeting that starts today. However, the Atlanta Fed's GDPNow forecast sees real GDP growing at a tepid 1.5% in the third quarter, according to data released today.

Wall Street responded by driving the Dow higher by 1.3% and the S&P 500 by 1.2%. The dollar strengthened against a basket of rivals, pressuring gold and other commodities denominated in it for international trade.

Equity markets largely ignored other, less rosy reports. Manufacturing output fell 0.4% last month, in line with expectations. The Fed's Empire State manufacturing survey showed business activity dropped to a six-year low in the New York region in September.

The other precious metals were mostly higher, with platinum and palladium gaining 0.3% and 2.2%, respectively, while silver dipped 0.3%.

At the Comex close: December gold slid $5.10 to $1,102.60; December silver dipped 4 cents, to 14.32; October platinum added $2.80, to $958.20; and December palladium jumped $12.65 to $600.45 an ounce.