Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down 0.3% to close just above $1,771 after hawkish talk from the Fed and some upbeat US data lifted the dollar, pressuring alternative stores of value.

One day after traders heard some faint dovish undertones to the Fed's July minutes, several prominent Fed officials voiced support for more aggressive rate hikes today.

St. Louis Fed President James Bullard said he's leaning toward a third straight hike of 75 basis points in September. Neel Kashkari of the Minneapolis Fed said the central bank must get inflation down as soon as possible, even if it triggers a recession.

Echoing the potentially dovish message of the Fed minutes, Mary Daly of the San Francisco Fed admitted that the Fed should be careful not to over-hike into a weakening global economy. But she still allowed that another increase of 75 basis points is possible in September.

Giving cover to an aggressive Fed, momentum in the labor market continues unabated. First-time jobless claims fell to 250,000 last week, below forecasts, and totals for the previous week were revised lower. New filings for unemployment are consider a weathervane for the direction of the economy.

And the Philly Fed region reported business activity among manufacturers expanded in August after two straight months of contraction.

The dollar jumped 0.8% to a fresh three-week high the hawkish Fed talk and better data. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

The other precious metals were mixed, with silver and platinum sliding 1.4% and 1.6%, respectively, while palladium added 0.6%.

At the Comex close: December gold slipped $5.50 to $1,771.20; September silver dropped 27 cents to $19.46; October platinum shed $14.40 to $904.90; and September palladium picked up $12.70 to $2,149.40 an ounce.