Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.5% to close at a three-month high above $1,251 as the minutes from the last Fed meeting cast doubts on the pace of future rate hikes.

Released yesterday afternoon, the transcript of the January FOMC meeting expressed concerns about the U.S. fiscal outlook, prompting traders to question whether the central bank will raise interest rates as quickly as previously believed.

While most Fed members believed that higher rates would come "fairly quickly" if the economy continues its current momentum, they also cited "considerable uncertainty" over the tax and spending policies of Donald Trump and the strong dollar as potential headwinds. Trump has promised a "phenomenal" tax plan along with $1 trillion in infrastructure spending, which the Fed said "might not materialize."

The dollar shed 0.3% on the somewhat more dovish outlook, boosting gold and other commodities price in it for international trade. Rising initial jobless claims also weighed on the buck.

The other precious metals also rose, with silver and platinum adding 0.9% while palladium picked up 0.6%.

At the Comex close: April gold surged $18.10 to $1,251.40; May silver added 16 cents, to $18.18; April platinum rose $9.20 to $1,011.90; and June palladium picked up $4.40, to $774.60 an ounce.