AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

8/15/2022: Gold falls on China rate cut

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1% to close under $1,799 after weak economic data spurred an unexpected rate cut in China, lifting the dollar and undercutting alternative stores of value. It was the meal's lowest finish in a week.

China's industrial output, retail sales, and fixed-asset investment all failed to meet analyst estimates, signaling renewed weakness in the world's second-largest economy. The People's Bank of China responded with a surprise interest rate increase to provide stimulus.

The dollar surged 0.8% as the yuan tumbled and pressured risk-related currencies like the Aussie dollar and New Zealand kiwi. A falling dollar weighs on gold by making it more expensive in other currencies, limiting demand overseas.

Gold's tumble came despite slightly lower Treasury yields. Investors shifted toward the safety of government bonds after New York's Empire State index plummeted in August deeply into contraction territory. This regional index is closely watched as a weather vane for national manufacturing.

The other precious metals were also lower, with silver dropping 2.1% while platinum and palladium shed 2.7% and 2.8%, respectively.

At the Comex close: December gold fell $17.40 to $1,798.10; September slid 43 cents to $20.27; October platinum lost $25.80 to $933.60; and September palladium dropped $61.10 to $2,158.30 an ounce.