Daily Gold Update

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Precious metals declined modestly today on thin volume as the last week of August works its way to a conclusion and traders await news from Fed Chairman Ben Bernanke, who will speak Friday at the annual Kansas City Fed�s Economic Symposium at Jackson Hole, Wyo. December gold closed the New York session at $1,669.70, down $5.90, or 0.4%. Gold traded between $1,659 and $1,675 throughout the Hong Kong, London and New York sessions. A trading range between $1,655 and $1,680 is developing following last weeks gains. September silver closed at $30.88, down $0.17, or 0.6%. Silver is now finding support at $30.50 and resistance at $31.25. October platinum fell $32.80, or 2.1%, closing the New York session at $1,520.40. Platinum is now enjoying support at $1,515 and resistance at $1,565. And September palladium declined $15.05, or 2.3%, closing at $639.70. The trading range for palladium is shaping up between support at $635 and resistance at $660.

U.S. economic news was mixed today. According to the S&P Case-Shiller Home Price Index, home prices in the U.S. moved 2.3% higher in June, adding on to similar gains in May. The index is now up 0.5% year-on-year, marking the first time this index has been positive for over two years. While housing prices are rising, confidence in the U.S. economy is weakening slightly, with the release of the Conference Board�s Consumer Confidence Index today at 60.6, down from last months 65.4. This is the lowest level since last November.

Also released today was the Richmond Feds manufacturing index reflecting manufacturing activity in the central Atlantic states. Coming in today at -9, manufacturing continues to be week, but less week than last month, which came in at -17. A number under 0 means manufacturing is contracting while a number over 0 means manufacturing is expanding. In the past two weeks, the New York and Philadelphia Feds reported sharp drops in their regions' factory activity, raising concerns about a more widespread U.S. slowdown. The Philadelphia bank's business index sunk deeper into negative territory, to -16.6 from -5.8 in May. The New York reading dropped to 2.29 from 17.09.