Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold inched higher by half a buck to close at $1,947 despite upbeat US data that sparked rises in stocks and the dollar, undercutting demand for alternative assets. The metal was little changed for the week, edging down 0.1%.

US home sales surged in July for a second month, jumping nearly 25% after June's 20% rise. Mortgage rates near record lows and pent-up demand from coronavirus lockdowns during the spring brought waves of buyers into the market. Sales of existing homes have now retraced all their pandemic losses.

Data firm IHS Markit reported its Composite PMI Index rose this month to the highest level since February 2019. Business activity in both the manufacturing and services sectors rose sharply despite the resurgence of coronavirus infections, especially in the South and West.

Wall Street applauded the upbeat data, with the Dow rising 0.7% and S&P 500 adding 0.7% and 0.3%, respectively. The tech-heavy Nasdaq also added 0.3%, posting a weekly rise of 2.5% and hitting a new intraday record.

The dollar rose 0.5% against major rivals as the euro plunged on PMI data showing the recovery slowing in the Eurozone. A stronger dollar typically pressures gold and other commodities by making them more expensive overseas.

The other precious metals were lower for the day and mixed for the week. Silver fell 1.5% for a 3% weekly decline. Platinum dipped 0.1% today and lost 3.4% this week. Palladium and palladium slid 0.3%, but still rose 1.7% for the week.

At the Comex close: December gold added 50 cents, to $1,947; December silver lost 42 cents to $26.88; October platinum dipped 80 cents to $926.10; and September palladium slid $6.60 to $2,180.30 an ounce.