Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold closed 0.1% lower on profit-taking before bouncing 0.5% higher in electronic trade after data showed a sharp decline in mid-Atlantic manufacturing. Following yesterday's 3.3% rally, gold's largest one-day rise in over a year, traders shifted some gains toward equities, pushing the Dow higher by .25% to a new record high and the Global Dow up by .35%.

Gold prices gained after hours, however, following reports that manufacturing in the Richmond Fed region plunged into deep contraction in July, with declines in new order and shipments. Combined with yesterday's report that June home sales fell by 1.2%, the weak factory data supported the view that the FOMC will maintain the current pace of monetary stimulus when it meets next week, and nudged the dollar lower against most rivals. Silver dropped 1.2% on profit-taking following yesterday's 5.3% rally while platinum and palladium surrendered 0.3% and 1.5%, respectively.

At the Comex close: August gold dipped $1.30 to $1,334.70; September silver fell 26 cents to $20.25; October platinum slipped $4.90 to $1,443.10; September palladium gave back $11 to $739.45 an ounce.