Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 1.2% to close under $1,125 after a new round of easing by China and dovish comments by a prominent Fed member spurred a rally in equities, reducing demand for safe haven assets.

The People's Bank of China announced yet another new stimulus measure to reignite growth in its slowing economy, injecting nearly $22 billion in the financial system through a short-term liquidity adjustment operation. The move follows a recent 3% devaluation of the yuan, and comes just one day after the central bank lowered reserve requirements and cut its benchmark interest rate.

New York Fed President William Dudley said today that the case for a rate hike in September is "less compelling" than it was a few weeks ago because of recent turmoil in global markets and the slowdown in China. A voting member of the FOMC, Dudley is seen as a close ally of Fed Chair Janet Yellen so his opinions carry added weight.

U.S. equities rallied behind Dudley's comments and the Chinese stimulus measures, pulling interest away from safety assets like gold and Treasury bonds. Shares were also buoyed by the Commerce Department's report that orders for durable goods rose 2% in July, more than expected. The Dow added rose more than 400 points, or 2.6%, while the Global Dow gained nearly 0.9%.

The other precious metals were mostly lower, with silver and palladium dropping 3.9% and 1.9%, respectively, while platinum rose 0.4%.

At the Comex close: December gold fell $13.70 to $1,124.60; September silver lost 57 cents to $14.04; October platinum added $3.50, to $980.20; and September palladium surrendered $10.45 to $529.65 an ounce.