Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to a one-year low under $1,228 as Congressional testimony from Jerome Powell supporting future rates hikes boosted the dollar, dulling demand for alternative stores of value.

Speaking before the Senate Banking Committee, Fed Chair Powell gave an upbeat assessment of the US economy despite growing uncertain over trade conflicts. Citing strong job growth and rising inflation, Powell said "gradually raising the federal finds rate" is the "best way forward" for monetary policy.

The dollar jumped 0.5% against major rivals as traders speculated that the Fed is more likely to hike rates twice more this year. Higher interest rates support the dollar by attracting foreign exchange investment seeking higher yield, in turn weighing on gold and other dollar-denominated commodities by making them more expensive in other currencies.

The other precious metals were also lower, with silver dropping 1.2% while platinum and palladium slid 0.8% and 0.5%, respectively.

At the Comex close: August gold fell $12.40 to $1,227.30; September silver dropped 20 cents to $15.62; October platinum slid $6.50 to $819.90; and September palladium slipped $4.30 to $909.20 an ounce.