Gold News & Info

Source: Bill Musgrave, American Gold Exchange

AustinNew York spot gold slipped 0.6% to close near $2,565 as Treasury yields and the dollar bounced from 2024 lows after upbeat US data damped expectations for a jumbo rate cut from the Fed. Silver edged down 0.1% to finish at $30.73 an ounce.

US retail sales rose 0.1% in August, more than forecast, suggesting that the economy remains on a reasonably solid footing. Retail sales constitute around one-third of consumer spending, which in turn accounts for roughly 70% of GDP.

Industrial production also rose more than expected, adding 0.8% last month. But most of the increase came from auto manufacturing. Otherwise, output rose just 0.3%, indicating that the industrial side of the economy remains in a slump.

Benchmark 10-year Treasury yields rose on the data as investors speculated that the Fed may be less inclined to slash interest rates by 50 basis points when its two-day meeting concludes tomorrow. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Tracking higher with yields, the dollar added 0.2% against major rivals but is still hovering near the lowest levels of the year. A stronger dollar pressures gold and other commodities by making them more expensive in other currencies, limiting overseas demand.

Platinum slid 0.5% while palladium rose 3.5% on expectations that Russia, a major producer, will alter its export policies to penalize the West for supporting Ukraine.

At the New York spot gold close: gold slipped $16.10 to $2,564.70; silver dipped 4 cents to $30.73; platinum shed $5.40 to $982.80; and p0alladium picked up $38.20 to $1,120.80 an ounce.