Gold News & Info

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Precious metals rebounded modestly from Friday�s closes as markets have started to process the comments made by various Fed officials at last week�s monetary policy symposium in Jackson Hole, WY. Today gold added $1.20, silver $0.12, while platinum and palladium gained $3.40 and $5.50 respectively. The U.S. dollar index, which measures the greenback against a basket of currencies, softened to 95.53 during the New York session after hitting an eight day high of 95.80 early this morning.

The U.S. Commerce Department reported today that consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased in 0.3% in July following a 0.5% increase in June. July is the fourth straight month of gains, and suggests that momentum from the 2nd quarter, when consumer spending grew 4.4% (it�s fastest pace in nearly two years,) remains intact. Rising wages buoyed by a tightening labor market, along with rising stock and home values are helping to get U.S. consumers, who have been more inclined to save than spend these last two-years, to part with some of their hard earned dollars of late.

Inflation remains tame, however, with the personal consumption index (PCE) gaining 0.1% in June and July. In the last 12 months the PCE, the Fed�s preferred measure of inflation, has expanded 1.6% and remains comfortably below the Fed�s 2% target. Odds that the Fed may raise interest rates during their September meeting have now risen to 38% as the U.S. economy continues to slowly improve, despite persistently low inflation.

At the Comex close: December gold rose $1.20 to $1,327.10; December silver gained 12 cents to $18.85; October platinum gained $3.40 to $1,081.00; December palladium gained $5.50 to $693.30 an ounce.