Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinGold edged 0.3% higher in relatively quiet trading while treasury yields world-wide, conversely, weakened modestly. Gold continues to stubbornly hold above $1,500 per ounce, despite a strong U.S. dollar.

Gold normally trades inversely to the dollar but, as yields have fallen, gold has risen in value due to concerns over a weakening global economy that the U.S. has so far remained resistant to. That sentiment is shifting, however, following the inversion of the yield curve in the U.S. last week and yesterday’s report out of Germany that economic output will remain "lackluster" in the third quarter and "could continue to fall slightly". Germany, Europe's largest economy, contracted 0.1% in the second quarter, prompting the ECB to consider extra monetary stimulus.

Market focus tomorrow will be on the release of the Fed minutes following their July meeting when the Fed dropped interest rates 25 basis points. Traders will be looking for clues and insight into possible Fed actions going forward.

At the Comex close: December gold gained $4.10 to $1,515.70; September silver surged $0.20 to $17.13; October platinum fell $6.50 to $850.30; and September palladium gained $10.10 to $1484.40 an ounce.