Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% to close below $1,216 as a higher GDP revision for the second quarter boosted the dollar and helped U.S. equity markets rebound after yesterday's sell-off. The metal finished the week 0.1% lower.

The U.S. economy grew at an annual rate of 4.6% from April through June, rather than the 4.2% reported last month, the Commerce Department said today, marking its best quarter since 2011. The revision signals a marked improvement over the first quarter's 2.1% contraction, with the biggest gains coming in health care spending and business investment. Overall growth for the year is expected to hold around 3%, although continued strength in the dollar could impair it by reducing demand for U.S. exports, which become more expensive as the dollar rises relative to other currencies.

Two Fed officials voiced concern about the effects of the dollar's rise this week. William Dudley of the New York Fed said rapid rises in the currency work against the goals of boosting employment and combatting deflation by making U.S. exports less competitive and imports cheaper. Atlanta Fed President Dennis Lockhart today added that recent dollar appreciation exacerbates the weak domestic and international demand that already hamper the recovery, and may justify delaying any rate increases until later next year.

The Dow recouped 1% and the S&P 500 nearly 0.8%, pulling investors away from safe havens like gold and Treasurys. The ICE Dollar Index, which measures the currency against a basket of rivals, gained for the eleventh straight week, largely behind expectations the U.S. soon tighten monetary policy while other major economies, especially Europe and Japan, loosen it further.

The other precious tracked fell harder than gold, with silver dropping 0.6% for the day and week. Platinum lost 0.9% today and 2.6% this week, while palladium tumbled 2.3% to close the week down 3.5%.

At the Comex close: December gold slid $6.50 to $1,215.40; December silver dropped 10 cents to $17.48; October platinum fell $12.20 to $1,302; and December palladium tumbled $18.65 to $783.55 an ounce.