Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close at $1,944 as new worries about China's real estate sector pressured the yuan and lifted the dollar, undercutting alternative stores of value. It was the metal's lowest finish in a week.

China's biggest property developer, Country Garden, defaulted on interest payments on $1 billion in dollar-denominated debt, raising concerns about the stability of the nation's real estate sector. Slowing growth, a massive debt load, and faltering exports are plaguing the world's second-largest economy.

The dollar rose 0.3% to a one-month against major rivals led by the yuan, which sank on the Country Garden default. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies, limiting overseas demand.

Benchmark 10-year Treasury rose modestly as traders digested last week's hotter-than-expected core inflation reports. Both the CPI and PPI showed mild upticks, complicating the Fed's rate view.

Higher oil also weighed on gold. US benchmark WTI crude dropped 0.8% to $82.50 per barrel as China's stumbling economic recovery raised doubts about future demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver sliding 0.2% while platinum and palladium shed 0.9% and 2.8%, respectively.

At the Comex close: December gold dipped $2.60 to $1,944; September silver slipped 3 cents to $22.71; October platinum dropped $7.80 to $906.80; and September palladium shed $36.20 to $1,272.90 an ounce.