Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at $1,292 as the dollar edged higher ahead of the annual meeting of global central bankers at Jackson Hole.

With Fed Chair Janet Yellen and ECB chief Mario Draghi scheduled to speak tomorrow, traders hedged positions in anticipation of new signals on the direction of monetary policy in the US and Eurozone. While both economies show signs of solid growth, persistently subpar inflation has inhibited the normalization of interest rates on both sides of the Atlantic.

The dollar added 0.1% against major rivals as the euro weakened slightly on expectations that Draghi will downplay recent talk of reducing quantitative easing, the ECBs stimulus program of buying bonds to increase the money supply. A rising dollar typically pressures gold and other commodities priced in it for international trade.

Gold's downside was limited by concerns about US fiscal and trade policy. President Trump vowed earlier this week to shut down the government if Congress does not authorize payment for his promised wall along the border with Mexico. Worries about tensions with North Korea have also driven safe-haven bids.

Hedge funds and other huge money managers extended their bullish bets on gold for a fifth week, increasing net-long positions on Comex by 30% last week.

The other precious metals were mixed, with silver dropping 0.5% while platinum and palladium added 0.2% and 0.3%, respectively.

At the Comex close: December gold dipped $2.70 to $1,292; September silver dropped 8 cents to $16.96; October platinum added $1.70, to $982.60; and September palladium picked up $3.15 to $936.15 an ounce.