Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% to close at $1,926 despite a stronger dollar as softer housing data credit downgrades of regional banks lifted demand for safe havens. It was the metal's third straight day of gains.

S&P Global Ratings downgraded five regional lenders after reviewing risks related to asset quality, liquidity, and funding. The move comes just two weeks after Moody's also downgraded regional banks and said it was reviewing its ratings on several megabanks including Bank of New York Mellon, State Street, and Northern Trust

Separately, US homes sales tumbled 2.2% to a six-month low in July, with sales activity the lowest since the Great Recession. The sharp rise in mortgage rates to more than 7% was cited as the leading factor.

Benchmark 10-year Treasury yields retreated slightly as investors leaned toward safety in government bonds. Falling yields help gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Limiting gold's gains, the dollar edged up 0.2% against major rivals after Richmond Fed chief Thomas Barkin said "the reacceleration scenario," in which the economy strengthens while inflation remains high, could mean higher interest rates for longer.

The other precious metals were also higher, with silver adding 0.5% while platinum and palladium picked up 1.3% and 2.1%, respectively.

At the Comex close: December gold rose $3 to $1,926; September silver added 11 cents, to $23.45; October platinum picked up $12 to $925.50; and September palladium climbed $25.70 to $1,264.80 an ounce.