Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.2% to close just above $1,962 as yields and the dollar firmed despite soft US data ahead of tomorrow's Fed meeting on monetary policy. It was the metal's lowest finish in a week.

The US economy grew in July at its slowest pace in five months, according to a pair of surveys conducted by S&P Global. The services sector, which employs most Americans, fell to 52.4 from 54.4 in June for the lowest reading since February. Any reading over 50 signals expansion.

The manufacturing sector improved slightly but remained in contraction, rising from negative 46.3 to negative 49. Manufacturing has been in contraction for months, according to S&P, and is arguably in a recession.

While weak, the US economy is faring better than the Eurozone. The HCOB composite index for July fell to 48.9 from a downward revision of 49.9 in June, with expectations that the Eurozone economy will continue to contract in coming months.

The dollar picked up 0.3% against major rivals, especially the euro, as traders weighed the relatively weaker Eurozone data against the likelihood of further rate hikes this week from the Fed and ECB. A rising dollar weighs on gold by making it pricier in other currencies.

Benchmark 10-year Treasury yields also inched higher as bond traders await any indications from the Fed this week about future rate prospects beyond this meeting. A July increase of 25 basis points is already baked into the market.

The other precious metals were also lower, with silver sliding 1.1% while platinum and palladium lost 0.3% and 1.4%, respectively.

At the Comex close: August gold dipped $4.40 to $1,962.20; September shed 27 cents to $24.58; October platinum lost $2.70 to $969.50; and September palladium surrendered $17.70, to $1,268.80 an ounce.