Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.8% to close just under $1,173 on profit-taking after last week's rally to a four-month high above $1,187. The metal was also pressured by a stronger dollar as traders anticipate deeper monetary easing from China, Europe, and Japan.

China's growth rate fell to 6.9% in the third quarter, the weakest in six years, according to official figures. Slightly above most forecasts, the poor performance came despite a range of stimulus measures enacted in recent months and raised expectations that the PBOC will further cut interest rates.

Japan's Q3 GDP looks to be extremely weak, with economists downgrading forecasts to just 0.4% growth. The world's third-largest economy contracted 1.2% in Q2 and may be sliding into recession, prompting promises of yet more economic reforms from Prime Minister Abe. And the ECB is expected to deepen quantitate easing, its Fed-style program of asset-purchases, when it meets later this week.

The dollar rallied against major rivals, pressuring gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers. However, traders are beginning to unwind bets that the dollar will strengthen further, with speculative long positions declining by $2.1 billion last week to the lowest level in 14 months.

The dollar has trended downward since mid-September, when the Fed refrained from raising rates because of low inflation and China's slowdown. Soft recent economic data at home and abroad have increased the odds that the central bank will delay its first hike since 2006 until well into next year, boosting sentiment for gold and silver.

The other precious also fell, with silver dropping 1.3% while platinum and palladium lost 0.9% and 1.6%, respectively.

At the Comex close: December gold slid $10.30 to $1,172.80; December silver dropped 27 cents $15.84; January platinum lost $9.10 to $1,014.60; and December palladium retreated $11.30 to $688.10 an ounce.