Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged higher to close near $1,254, the highest level since early July, as the dollar slipped ahead of tomorrow's rate decision from the Federal Reserve.

The ICE Dollar Index fell around 0.1% as traders unwound long positions on the buck in anticipation of dovish signals from the Fed after this week's policy meeting. A softer dollar boosts gold and other commodities by making them less expensive overseas.

While another quarter-point increase is already priced into the market, analysts believe tomorrow's post-meeting statement may voice concern for the slowing global economy and weakening equity markets, perhaps suggesting a slower pace for hikes in 2019.

Several prominent committee members, including Fed Chair Jerome Powell, have recently said rates are nearly at neutral, the Fed's target, which would alleviate the need for additional increases. The dollar has risen around 5% this year, and gold has fallen by the same, largely because of steady rate increases.

The other precious metals were slightly lower, with silver slipping 0.4% while platinum and palladium lost 0.1% and 0.2%, respectively.

At the Comex close: February gold added $1.80, to $1,253.60; March silver slid 5 cents to $14.70; January platinum dropped $1.10 to $794.80; and March palladium dropped to $2.80 $1,179.20 an ounce.