Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.3% to close above $3,327 as mildly dovish comments from Jerome Powell pressured Treasury yields and the dollar, lifting alternative stores of value ahead of some key data releases this week. Silver climbed 1.5% to finish at $36.55 an ounce.

In his second day of Congressional testimony on monetary policy, the Fed Chair told the Senate panel that the possibility of inflation from US tariff policies will keep the Fed vigilant for now. But Powell added that the central bank is likely to "cut rates sooner than later" if price-pressures remain contained.

Fed fund futures traders now see an 85% likelihood of a quarter-point rate cut in September, followed by at least one more before 2026. But this week's release of GDP data and the PCE report on inflation will give a clearer view on interest rates.

Benchmark 10-year Treasury yields slipped further beneath 4.3%, boosting gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar slid 0.2% against major rivals, supporting gold and other commodities by making them less expensive in other currencies.

Platinum and palladium added 2.4% and less than 0.1%, respectively.

At the New York spot close: gold gained $9.70 to $3,327.10; silver surged 55 cents to $36.25; platinum picked up $31.70 to $1,352.40; and palladium rose 50 cents to $1,069 an ounce.