Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,940 as yields and the dollar ticked slightly higher after Fed Chair Jerome Powell's speech at the Jackson Hole summit of global central bankers. The metal still gained 1.2% for the week, notching its first weekly win since late July.

Powell balanced hawkish and dovish tones in his widely anticipated address, leaving the door open to additional rate hikes but apparently in no hurry to rush through it. He reiterated the Fed's intention to bring inflation back to its 2% target and rejected calls to raise this target. But added that the policymakers "would proceed carefully as we decide whether to tighten further."

The Fed Chair acknowledged that the most aggressive rate-hike cycle in 40 years has made rates "restrictive," or high enough to reduce inflation, and conceded that a "lag" should be expected before current rate levels have their full effect. But he also questioned whether they are high enough at current levels to achieve the Fed's goals.

Benchmark 10-year Treasury yields crept higher immediately following Powell's speech, only to give back those gains as investors digested some of its dovish inflections.

The dollar added 0.2% against major rivals, pressuring gold and other commodities by making them more expensive in other currencies.

Gold enjoyed its first weekly win in five as softer PMI data in the US and Europe combined with recent defaults in China's real estate sector to raise concerns about global growth, boosting safe-haven investments.

The other precious metals were mixed for the day and week. Silver added 1.5% for a weekly rise of 8%. Platinum rose 0.6% for the session and 2.6% for the week. Palladium lost 1.3% today and 2.5% this week.

At the Comex close: December gold fell $7.20 to $1,939.90; September silver added 35 cents, to $24.58; October platinum picked up $5.20 to $948; and September palladium lost $15.50 to $1,229 an ounce.