Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close at a one-week high above $1,321 as the dollar slipped ahead of the conclusion of the Fed's two-day meeting on monetary policy. The metal then added to gains in electronic trade, pushing as high as $1,334, after the Fed mentioned only three rates for 2018.

The FOMC raised interest rates by a quarter-point, as widely expected, saying the economic outlook has strengthened despite a slowdown in the first quarter. However, the central bank also damped speculation that it will raise interest rate four times this year by stating explicitly that will stick to December's published schedule of three. There were no dissents.

The dollar fell 0.2% against major rivals before the Fed's statement, then extended its loss to 0.4% afterward as the reality of three rate hikes in 2018 hit the markets. Fewer hikes mean lower yield, attracting less foreign exchange investment that would bid up the dollar. In turn, gold and other commodities, which are priced in dollars overseas, remain less expensive and more attractive to users of other currencies, supporting demand.

The other precious metals were also higher at close and extended gains after hours. May silver rose 22 cents to 16.41, then added another 19 cents to $16.60. April platinum gained $5.60 to $950.60, then added another $8 after hours. June palladium closed $10.55 higher at $986.45, then picked another $1.85 in electronic trade.