Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold tumbled 2.3% to close under $1,279, the lowest level this year, as upbeat economic data and the prospect of monetary tightening in the US and Eurozone overcame trade-war worries to spark a technical selloff. The metal ended the week 1.9% lower.

The Empire State manufacturing index rose in June to an eight-month, adding to data showing the US economy is gathered momentum in the second quarter. Consumer sentiment also climbed, with income gains giving a boost to optimism over current conditions. Earlier this week, reports showed retail sales jumped in May to an annualized rise 5.9%, fueled in part by tax cuts and the lowest unemployment rate 18 years.

The Fed raised interest rates by a quarter-point this week, as expected, while changing their foreword guidance to indicate two more cuts by year's end, which was not expected. In addition, the ECB announced that it will end the bond-buying program known as quantitative easing by December. Tantamount to printing money, QE has suppressed the value of the euro by increasing the supply in circulation.

The combination of tighter monetary policies to come and stronger US economic growth prompted gold traders to liquidate long positions, triggering a series of stop-loss sales that picked up speed as the session wore on. Early gains by the dollar also undercut the metal.

Earlier this week, gold received support from rising trade-war tensions after the Trump administration criticized last weekend's the G7 meeting and prepared $50 billion in tariffs against China. That support eroded today, driving the metal from a weekly gain to a loss as monetary policies took precedence.

The other precious metals were also lower for the day and week. Silver lost 4.5% for a weekly drop of 1.6%. Platinum fell 2.5% today and 2% this week. Palladium surrendered 2.5% for a weekly decline of 2.4%.

At the Comex close: August gold lost $29.80 to $1,278.50; July silver plunged 78 cents to $16.48; July platinum dropped $23.10 to $887.80; and September slid $24.60 to $981.80 an ounce.