Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin, TXGold slid 0.4% to close at a two-week low of $1,328 as the dollar rallied on an uptick in wholesale inflation, reducing demand for alternative stores of value.

Extending its rise to a third session, the dollar added 0.6% against major rivals following the release of government data showing US producer prices rebounded 0.2% in August after falling in July. Gold quickly pulled back from an intraday high above $1,340. A rising dollar pressures gold and other commodities priced in it for international trade by making them more expensive overseas.

Although the PPI increase fell short of expectations and was driven mainly by gasoline prices, it prompted traders to be cautiously optimistic about the consumer inflation report due Thursday. A strong CPI reading could nudge the Fed closer to a third rate hike this year, boosting the dollar and further pressuring gold.

The other precious metals also finished lower, with silver dipping 0.1% while platinum and palladium lost 0.3% and 1%, respectively.

At the Comex close: December gold slid $4.70 to $1,328; December silver dipped 2 cents to $17.87; October platinum fell $3.30 to $983.20; and December palladium surrendered $9.70 to $933.70 an ounce.