Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell another 0.7% to close near $1,915 as upbeat data and a hawkish rate view continued to lift yields, undercutting alternative stores of a value. It was the metal's ninth straight day of losses.

Yesterday's release of the minutes from the July FOMC meeting revealed that a majority of committee members still see "significant upside risks to inflation" and believe "further tightening " may be needed. Furthermore, the Fed economic staff dropped its forecast of recession, giving the central bank leeway to keep rates higher for longer.

Data released today support the rosier economic picture. First-time jobless claims fell 11,000 last week, signaling a dearth of layoffs. The Philly Fed gauge of regional business activity climbed sharply into expansion in August. And the Atlanta Fed's GDP "nowcast" shows growth at 5.8% for the third quarter.

Benchmark 10-year Treasury yields pushed as high as 4.32% on the hawkish rate view, notching its highest level in 16 years. Higher yields pressure gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals were higher, with silver adding 0.8% while platinum and palladium picked up 0.5% and 0.7%, respectively.

At the Comex close: December gold slid $13.10 to $1,915.20; September silver rose 18 cents to $22.72; October platinum added $4.30, to $895.60; and September palladium picked up $8.10 to $1,220.50 an ounce.