Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close above $1,217 as a slight rise in the dollar and equities reduced demand for alternative assets.

The Dow and S&P 500 edged up to new all-time highs after yesterday's dovish comments from Fed Chair Janet Yellen boosted risk appetite for a second session. Speaking to Congress, Yellen signaled that interest rates are likely to rise more slowly because of weak inflation and diminished prospects for growth due to lagging productivity and an aging population.

Wholesale prices barely rose in June, with the PPI adding just 0.1% after rising steadily in 2016 and early 2017, the government said today. Other indicators also show inflation tapering off. The Fed's preferred measure of consumer inflation, the PCE index, has slowed to 1.4% from as high as 2.1% early in the year.

Dallas Fed President Rob Kaplan said he wants more evidence of rising inflation before supporting another rate hike. A voting Fed member, Kaplan joins Fed Governor Lael Brainard and Minneapolis Fed President Neil Kashkari in expressing opposition to tighter monetary policy in recent weeks.

The dollar ticked up 0.1% in technical trade, pressuring gold and other commodities denominated in it for international trade.

The other precious metals also finished lower, with silver dropping 1.2% while platinum and palladium fell 1.3% and 0.8%, respectively.

AT the Comex close: August gold dipped $1.80 to $1,217.30; September silver fell 20 cents to $15.69; October platinum shed $11.90 to $907.10; and September palladium lost $6.80 to $854.75 an ounce.