Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close near $1,933 as mixed US economic data confirmed expectations that the Fed will stand pat on rate hikes next week. But the metal remained near a three-week low, under pressure from the dollar's rally to a six-month high.

Retail sales rose 0.6% in August, beating forecasts, for its fifth straight monthly increase. But nearly all the gain came from sharply higher gasoline prices. Excluding gasoline, sales increased by a modest 0.2%. Retail sales constitute around one-third of consumer spending, which itself accounts for roughly two-thirds of GDP.

Wholesale inflation rose 0.7% last month, the biggest jump in 14 months. But like yesterday's CPI print and today's retail sales, the lion's share was attributable to an 11% jump in gasoline prices. The so-called core PPI, less food and energy costs, rose 0.3%

First-time jobless claims rose 3,000 last week to 220,000, the Labor Department reported, in line with forecasts.

Benchmark 10-year Treasury yields were virtually flat as traders expect the Fed to leave rates unchanged when it meets next week on monetary policy. The odds of a pause remain at 97%, according to Fed fund futures trading.

Gold was supported by rising oil prices after the International Energy Agency said production cuts by Russia and Suadi Arabia will result in a market deficit the fourth quarter. US benchmark WTI crude rose 1.9% to close above $90 per barrel for the first time since November 2022.

Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Capping gold's gains, the dollar rallied 0.6% to a six-month high after the ECB raised interest rates to 4% but signaled the end of rate hikes. A stronger dollar pressures gold by making it pricier overseas.

The other precious metals were mixed, with silver and palladium sliding 0.8% and 0.5%, respectively, while platinum rose 0.7%.

At the Comex close: December gold added 30 cents, to $1,932.80; December silver slid 19 cents to $22.99; October platinum picked up $5.90 to $911.10; and December palladium dropped $6 to $1,254.80 an ounce.