Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close near $1,234 despite a stronger dollar as soft inflation data eased pressure on the Fed to raise interest rates more aggressively. The metal ended July down 2.6%.

The Fed's preferred inflation measure, the Personal Consumption Expeditures (PCE) index, rose just 0.1% in June, holding annualized inflation steady at 2.2%. The core PCE, stripping out volatile food and energy costs, also rose 0.1% for a 12-month rate of 1.9%. Consumer spending rose a solid 0.4%.

Overall, inflation and wages were tame in the second quarter after a sharp increase during Q1, which removes some urgency from the Fed as it meets today to discuss monetary policy.

The dollar edged up 0.2% after the Bank of Japan weakened the yen by signaling no change in its easy-money policies at its meeting. Traders had expected the BOJ to lower its inflation target to 1.5% from 2%. Japan is now the last developed economy to retain an accommodative stance.

The other precious metals were also higher on the day but sharply lower for the month. Silver added 0.1% but close July down 3.9%. Platinum rallied 1.7% for a monthly loss of 1.8%. Palladium climbed 1% but still lost 2.2% in July.

At the Comex close: December gold gained $2.10 to $1,233.60; September silver added 2 cents, to $15.56; October platinum climbed $14.30 to $845.80; and September rose $9.40 to $931.90 an ounce.