Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close under $1,422 as upbeat corporate earnings and a Congressional budget deal boosted stocks and the dollar, dulling demand for alternative assets. Silver extended its rally, however, adding another 0.4%, to $16.48.

President Trump and Congressional Democrats reached a two-year agreement to raise the debt ceiling, allowing the government to borrow more money to cover increases in spending. The deal will prevent a replay of January's partial shutdown of the government, which shaved around $3 billion off GDP.

Buoyed by better-than-expected earnings from blue chips like Coca-Cola and United Technologies, the S&P 500 and Nasdaq rallied 0.7% and 0.5%, respectively, to approach new record highs. Risk appetite was also fueled by expectations that the Fed will cut interest rates when it meets next week, reducing borrowing costs.

The dollar rose 0.5% to a 5-week high on the budget deal, pressuring commodities like gold that are priced in dollars for global trade by making them more expensive overseas. The rising debt ceiling is seen as supportive of the buck because it allows the Treasury to borrow more money from the banking system, which bids up the dollar.

Silver has now gained in 7 of the last 8 sessions for an impressive 8% rise. While surged to new 6-year highs above $1,400, silver has been largely overlooked, making it a relative bargain. The gold-to-silver ratio jumped to historic levels of around 90:1 in recent weeks, whereas the 20-year average is around 60:1.

The other precious metals were mixed, with platinum rising 1% while palladium fell 0.7%.

At the Comex close: August gold slid $5.20 to $1,421.70; September silver added 7 cents, to $16.48; October platinum gained $8.90 to $861.60; September palladium lost $10.60 to $1,518.60 an ounce.