Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close under $1,123 as positive GDP data stoked U.S. equities and the dollar, dulling demand for safe-haven investments.

U.S. economic growth was revised to 3.7% in the second quarter, up from an earlier estimate of 2.3%, the Commerce Department said today. The stronger GDP was attributed in large measure to higher business investment and consumer spending. In addition, corporate profits rose 2.4% in Q2 after falling nearly 6% in Q1.

All three of the main U.S. indexes�Dow, S&P 500, Nasdaq�jumped more than 2%, as did the Global Dow. Treasury yields rose for a second day as investors steered back toward risk assets.

While the GDP revision suggests a stronger economy going forward, not all forecasts are so sanguine. The Atlanta Fed's GDPNow, widely seen as the most accurate indicator of real-time economic growth, sees the economy growing by just 1.7% in Q3, according to data released today.

Furthermore, the Commerce Department reported today that Gross National Income was just 2.1% in Q2, representing the largest gap with GNP in eight years. The measure of income generated by the production of all the goods and services in the economy, GNI is often considered a more accurate measure of economic activity.

The dollar received a boost from the upgraded GDP numbers, picking up 0.5% against a basket of rivals, as traders reassessed the timing of a rate increase. Yesterday, New York Fed President William Dudley damped expectations by saying the case for September is "less compelling" than it was a few weeks ago because of recent turmoil in global markets and the slowdown in China.

The other precious metals finished strongly higher, with silver gaining 2.7% while platinum and palladium rose 2.6% and 7.4%, respectively.

At the Comex close: December gold dipped $2 to $1,122.60; September silver gained 38 cents to $14.42; October platinum picked up $25.80 to $1,006; and September palladium jumped $38.96 to $568.60 an ounce.