Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinConsolidating its best quarter in four years, New York spot gold eased 0.3% to close above $2,626 as Treasury yields and the dollar edged up after Jerome Powell predicted a soft landing for the US economy. The metal gained 5.7% for the month to post an epic quarterly rise of 13.2%. Silver fell 1.1% to finish at $31.16 but still added 8.5% for the month and 6.6% for the quarter.

Speaking at the annual meeting of the National Association for Business Economics, Fed Chair Powell said the economy is "in solid shape," on track for a soft landing. Expecting inflation to cool further, Powell predicted two more rate cuts this year of 25 basis points each.

Meanwhile, the Chicago business-activity index, also known as the Chicago PMI, inched up in September but remained mired in contraction for the tenth straight month. The national ISM report later this week will give a better sense of US manufacturing health.

The dollar rose 0.4% against major rivals as traders weighed Powell's optimism and recalibrated their interest rate bets. Fed fund futures traders dropped the odds of a half-point cut in November to 35% from more than 53% last Friday. Benchmark 10-year Treasury yields rose slightly but held under 3.8%.

Gold surged to a series of all-time highs this month behind an aggressive pivot towards monetary easing by the Fed and escalating tensions in the Middle East. And more may be in store. Goldman Sachs today raised its forecast for gold to $2,900 an ounce by early next year.

Platinum fell 2.9% today and 2.3% this quarter. Palladium lost 2.3% today but rose 2.3% this quarter.