Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold eased 0.5% to close under $1,530 as falling oil and a stronger dollar pulled traders away from alternative assets. The metal finished August more than 6% higher for its fourth straight monthly gain, supported by concerns about global growth and trade conflicts. Gold is now up around 16% for the year.

The dollar rose 0.4%, boosted primarily by the euro's plunged to its lowest level in more than two years. With Germany's economy slipping toward recession and a messy October Brexit becoming more likely, the European Central Bank is widely expected to cut interest rates next month. Several ECB officials are also calling for aggressive measures like the return of quantitative easing, which would further undermine the shared currency.

Also boosting the buck, consumer spending surged in July as American's dipped into savings to pay for new cars and recreational goods. Incomes rose just 0.1%, however, for the smallest monthly gain in almost a year. A stronger dollar tends to weigh on gold and other commodities by making them more expensive in other currencies.

West Texas Intermediate crude lost more than 3% to finish under $54 on reports that Russian production cuts will be smaller than promised. The change in policy raises concerns that OPEC's agreement with non-OPEC producers to cut production may fall also apart, which would add to global supplies while demand flags because of slowing global growth. Gold often trades in sympathy with oil as a hedge against energy related inflation.

The other precious metals were higher for the day and month. Silver added 0.1% for a monthly increase of nearly 11%. Platinum rose 1.3% today and 6% this month. Palladium jumped 4.6% today to end August 1% higher.

At the Comex close: December gold fell $7.50 to $1,529.40; December silver picked up 2 cents to $18.34; October platinum added $11.70, to $931.70; and December palladium jumped $67.70 to $1,539.20 an ounce.