Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained for a fifth session, adding 0.7% to close above $1,967 ahead of the Fed's decision on interest rates. The metal then gave back those gains in electronic trading after the central bank's post-meeting messaging was more hawkish than expected.

As widely expected, the Fed kept interest rates unchanged at 5.25% to 5.5%. But in his post-meeting press conference, Fed Chair Jerome Powell stated explicitly that the central bank is "prepared to raise rates further" if data warrants and emphasized that rates are likely to stay high for longer than the market expects.

In the Fed's new dot-plot of projected interest rates, a clear majority of committee members foresee another quarter-point increase this year, to a range between 5.5% and 5.75%. In addition, rates are now projected to drop just 50 basis points in 2024, rather than the full 1% forecast at the June meeting.

After falling before the rate decision, benchmark 10-year Treasury yields pushed above 4.4% on the hawkish outlook. But Fed fund futures traders took it with a gain of salt, barely increasing the odds of another rate hike by December to 39% from 36% yesterday.

The dollar also pared its losses and bounced into a small gain after the Fed talk, pressuring gold and other commodities by making them pricier overseas.

The other precious metals were mostly higher. Silver and palladium rose 1.6% and 1.2%, respectively, while platinum slipped 0.6% at closing. After hours, silver trimmed its rise to 1%, palladium to 0.7%, and palladium deepened its loss to 1.2%.

At the Comex close: December gold gained $13.40 to $1,967.10; December silver added 38 cents, to $23.84; October platinum slid $6.10 to $942.30; and December palladium picked up $14.80 to $1,281.30 per ounce.