Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close at a one-week low under $1,852 after hawkish Fed speakers and rising Covid cases lifted the dollar, undercutting alternative stores of value. For the week, gold was down 0.9%.

Several prominent Federal Reserve officials spoke out today in favor of accelerating the removal of pandemic aid as the first step toward raising interest rates to combat inflation. Fed Vice Chair Richard Clarida said it "may very well be appropriate" discuss speeding up the taper at the next Fed meeting in December.

Separately, Fed Governor Christopher Waller said the improving labor market and "deteriorating inflation data" have pushed him to consider "a faster pace of tapering," perhaps by April. Under current Fed guidance, the end of quantitative easing would occur around July 2022.

Yesterday, Atlanta Fed President Raphael Bostic said the central bank could start raising interest rates by mid-2022 if the economy is back to full employment.

The dollar jumped 0.6% after the hawkish Fed speak, pressuring gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The buck was also buoyed by a sharp fall in the euro after Austria announced full lockdown to control escalating Covid infections, and Germany signaled that it may follow.

Gold was further pressured by tumbling oil prices as traders speculated that the resurgent pandemic in Europe will reduce demand. WTI crude fell 3.7% to a seven-week low just above $76 per barrel. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower fo the day and week. Silver dropped 0.5% for a weekly loss of 2.2%. Platinum fell 1.9% today and 4.9% this week. Palladium was 3% lower for a weekly decline of 2.1%.

At the Comex close: December gold sipped by $9.80 to $1,851.60; December silver fell 12 cents to $24.78; January platinum dropped $20.40 to $1,036; and December palladium shed $64.20 to $2,073.20 an ounce.