Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Extending last week's 1.5% rise, gold added another 0.5% to close near $1,234, as soft data and an increasingly dovish Fed boosted demand for alternative stores of value. The metal's recent rally has pushed it above its technically-important 200-day moving average of $1,230.

The New York Fed region's manufacturing index retreat July, adding to evidence of a cooling trend in the economy. Retail sales fell for a second straight month, the BLS reported on Friday, and the Atlanta Fed lowered in GDP growth forecast to just 2.4% in Q2.

Combined with weak inflation readings over the past few months, the softer data has triggered skepticism among several Fed members over the need for additional rate hikes. Dallas Fed President Rob Kaplan, Fed Governor Lael Brainard, and Minneapolis Fed President Neil Kashkari have questioned tighter monetary policy in recent weeks, while Fed Chair Janet Yellen told Congress last week that rates are close to equilibrium already.

The other precious metals also gained, with silver jumping 1% while platinum and palladium picked up 0.75 and 1%, respectively.

At the Comex close: August gold added $6.20, to $1,233.70; September silver climbed 17 cents to $16.10; October platinum rose $6.80 to $930.30; and September palladium gained$8.80 to $865.55 an ounce.