Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's 1.2% rise, gold gained another 0.4% to close near $1,947 as yields and the dollar pulled back ahead of key US economic data later this week. The metal recovered all its losses from Friday's session, when Jerome Powell signaled the possibility of additional rate hikes this year.

Speaking at the Jackson Hole summit of global central bankers last Friday, the Fed Chair reaffirmed his intention to bring inflation back to the Fed's 2% target. While admitting the "lag" between hikes and their effects, he questioned whether rates are currently high enough to reach that target, suggesting the possibility of more hikes this year.

But Powell also made some dovish gestures, asserting that rates are already at a restrictive level, high enough to slow the economy and bring down inflation. And any decisions about future tightening would be responsive to incoming data.

On Friday, Treasury yields pulled back slightly after Powell's words as traders weighed their equivocal nature. Forex traders were more hawkish, lifting the buck against major rivals and pushing gold down for a session loss if a weekly gain.

Today, benchmark 10-year yields continued their slide down to 4.2% and the dollar edged down 0.1%, helping gold and other commodities by making them less expensive overseas.

Traders are largely treading water ahead of the Thursday release of the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, followed by Friday's print of the government's nonfarm payrolls report for August.

The other precious metals were also higher, with silver adding 0.1% while platinum and palladium picked up 2.5% and 2.2%, respectively.

At the Comex close: December gold gained $6.90 to $1,946.80; September silver added 2 cents, to $24.25; October platinum rose $24 to $972.20; September palladium advanced $27.20 to $1,256.30 an ounce.