Daily Gold Update

Source:Matt Warden, American Gold Exchange

AustinGold was nearly flat today, down less than 0.1% to close under $1943 as markets continue to wait for potential insights into the Federal Reserve’s interest rate plans, with several Fed President speeches scheduled today after the market close.

The Federal Reserve Beige book, released Wednesday afternoon, showed the US economy grew slowly over the summer months, but indicated wage growth and inflation are likely to moderate broadly in the second half of the year. The survey continued a string of economic reports in recent weeks that underscore above-trend US economic growth while Europe and China weaken.

The dimming European and Chinese economic sentiment helped to support the dollar, which rose a modest 0.1%, inversely matching the price slide in gold.

Benchmark 10-year Treasury yields were also nearly flat, down 0.017 percentage points to 4.267%.

Rising US Treasury yields impair the relative attraction of gold, while a stronger dollar makes gold more expensive for foreign investors.

On the docket today are speeches from: Philadelphia Fed President Harker, who last month advocated rate hikes were over; Chicago Fed President Goolsbee, who has been openly uncertain what the next move should be; New York Fed President Williams, one of the more dovish Fed participants; Atlanta Fed President Bostic, who will be speaking twice today and has been an advocate of the “higher for longer” approach to interest rates; Dallas Fed President Logan, who has recently expressed concern that inflation will persist and that additional rate hikes may be needed before the end of the year. The Federal Reserve President’s public engagements are often used to drop subtle hints regarding upcoming monetary policy.

The other precious metals were mixed today, with silver and platinum down 1.1% and 0.6%, respectively, and palladium up 0.4%.

At the Comex close: December gold wobbled downward $1.70 to $1,942.50; December silver gave back 26¢ to $23.24; October platinum dropped $5.70 to $909.60; December palladium added $4.30 to settle at $1,215 an ounce.