Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.7% to close near $1,211 as falling wholesale inflation, a soft Beige Book from the Fed, and rising optimism about trade relations pressured the dollar, boosting demand for alternative stores of value.

The Producer Price Index fell in August for its first monthly drop in 18 months. Annualized wholesale inflation also declined, from 3.3% to 2.8%, in a sign that upward pressure on prices may be slowing down. Separately, the Fed's Beige Book, an anecdotal account of business conditions, showed weaker growth in the St Louis, Philadelphia, and Kansas City regions. Overall US growth remained "moderate."

Slowing growth and inflation takes some pressure off the Fed to raise interest rates twice more this year. A slower pace of rate hikes would weigh on the dollar, in turn supporting gold and other commodities priced in it for global trade.

The dollar fell 0.3% against major rivals as reports of progress in trade talks between the US and Canada diminished the safety premium recently enjoyed by the buck. In additional, the US reportedly reached out the China to resume negotiations to preempt a full-scale trade war.

The other precious metals were also higher, with silver rising 1% while platinum and palladium added 1.3% and 0.3%, respectively.

At the Comex close: December gold jumped $8.70 to %1,210.90; December silver rose 14 cents to $14.29; October platinum gained $10.60 to $799.90; and December palladium added $4.20, to $965 an ounce.