Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.4% to close under $1,189 as economic weakness in China and strength in the US boosted the dollar and bond yields, undermining demand for alternative stores of value

Trying to offset the headwinds caused by US tariffs, China's central bank cut the cash-reserve requirements for Chinese banks to lower finance costs and stimulate growth. China's stock markets have tumbled in recent weeks, raising concerns about overall health of the global economy.

The dollar gained 0.2% against major rivals as traders speculated that upbeat US data will encourage the Fed to maintain its pace of quarterly rate hikes. The US unemployment rate fell to 3.7% in September, a 49-year low, according to Friday's release of the nonfarm payrolls report. And the ISM reported last week that services industries posted their strongest growth in 21 years last month.

The dollar was also buoyed by last week's sharp rise in yields for long-dated US Treasury notes, themselves responding to the solid US economic data and concerns about higher inflation. A rising dollar pressures gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum dropping 2.2% and 0.8%, respectively, while palladium rose 1.1%.

At the Comex close: December gold lost $17 to $1,188.60; December silver fell 32 cents to $14.33; January platinum dropped $6.60 to $818.30; and December palladium rose $11.80 to 1,068.90 an ounce.