Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close just above $1,325 as stocks pushed to new record highs despite a spate of soft economic news, reducing demand for safe havens. The metal fell 1.9% for the week, pulled lower after upbeat inflation data boosted the possibility of another rate hike this year.

All three main U.S. indexes touched all-time highs today as investors ignored North Korea's firing of another test missile and weak U.S. economic data. Technology shares led the way, powered by chip makers and Apple's unveiling of new iPhones earlier in the week.

The risk rally shrugged off news that retail sales fell for the second time in three months, industrial production plunged in August by the most since the recession in 2009, and consumer sentiment edged lower on hurricane worries.

Growth estimates tumbled after the weak economic reports. The Atlanta Fed slashed its Q3 estimate for GDP growth from 3% to 2.2%, while the New York Fed cuts it GDP Nowcast to 1.3% from 2.1%.

The dollar fell 0.2% against major rivals, pressured by the soft data and reports that the ECB may cut its monetary stimulus.

Still, the buck gained around 0.5% this week, notching its strongest weekly rise since June. The rebound came after rising wholesale and consumer inflation boosted the odds of a December rate hike to greater than 50%, up from just 31% a week ago, according to CME FedWatch. A rising dollar pressures gold and other commodities by making them more expensive to users of other currencies.

The other precious metals were mixed for the day but lower for the week. Silver fell 0.5% today and 2.3% this week. Platinum dropped another 0.9% to close the week 4% lower. Palladium picked up 0.8% today but still lost 1% this week

At the Comex close: December gold slipped $4.10 to $1,325.20; December dropped 9 cents to $17.70; October platinum slid $9.10 to $971.80; and December palladium gained $7.45 to $921.75 an ounce.