Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5% to close at a two-week high above $1,341 as the dollar rolled back in the wake of softer U.S. data and the Fed's decision to hold interest rates unchanged.

Most of today's gains came in after-hours trading yesterday, when gold jumped following the release of the Fed's July policy statement, which traders found to be less hawkish than anticipated.

Although the central bank left the door open for a rate hike this year, it gave no solid indication of timing. And while the statement cited improving labor conditions and moderate growth, it also specified concern over persistently low inflation and weak prospects for long-term inflation, which have been major impediments to tightening monetary policy.

Weaker economic data is also supporting gold sentiment. Durable goods orders fell to a two-year low last month, signaling continued problems for U.S. manufacturing, while the trade gap widened by more than expected on struggling U.S. exports. And jobless claims rose more than expected last week.

The dollar pulled back on the data, boosting gold and other commodities by making them less expensive to overseas buyers.

The other precious metals were mostly higher, with silver and platinum both adding 1% while palladium slid 0.8%.

At the Comex close: December gold gained $6.70 to $1,341.20; September silver jumped nearly 20 cents to $20.19; October platinum climbed $10.70 to $1,138.90; and September palladium slid $5.25 to $698.65 an ounce.