Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold inched down less than 0.1% to close under $2,310 despite decreases in yields and the dollar after yesterday's dovish comments from Jerome Powell stoked risk appetite, undercutting safe-haven assets. Silver picked up 0.3% to finish at $26.58 an ounce.

At the end of the Fed's two-day meeting on Wednesday, Fed Chair Powell relieved investor anxiety by saying the central bank's next move will not be to raise interest rates. A recent spate of higher inflation readings had caused some concern, but Powell remains confident that upcoming data will reinforce his view that rate cuts, not hikes, are on the way.

Wall Street rejoiced in Powell's dovish lean, with all three major US indexes rallying more than 1% as investors shifted into risk assets.

Benchmark 10-year Treasury yields nonetheless slipped back under 4.6%, stemming gold's slide by decreasing the opportunity cost for holding it instead of bonds.

The dollar fell 0.4% on the changing rate view and indications that the Bank of Japan will intervene again to support the yen.

Tomorrow's release of the government's nonfarm payrolls report should be further clues on the near-term direction of the labor market and therefore interest rates.

Platinum added 0.8% while palladium fell 1%.

At the New York spot close: gold dipped $1.40 to $2,309.60; silver added 9 cents, to $26.58; platinum picked up $7.70 to $962.60; and palladium shed $9.50 to $939.10 an ounce.