Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% but held above $1,320 as hawkish comments from Fed members boosted the dollar and diminished demand for alternative stores of value. The metal snapped an 11-session winning streak, its longest on record.

Loretta Mester of the Cleveland Fed said on Friday that four rate hikes are likely this year as growth accelerates and unemployment stays low. Separately, John Williams of the San Francisco Fed argued for at least three hikes in 2018, given that the already-strong economy is likely to get a lift from tax cuts.

The dollar jumped 0.4% to a two-week high on the Fed comments. Higher interest rates tend to lift the dollar by attracting foreign exchange investment seeking higher yield. A stronger dollar, in turn, tends to pressure gold and other commodities priced in it for international trade by making them more expensive overseas.

The other precious metals were mixed, with silver sliding 0.8% while platinum and palladium added 0.1% and 1.3%, respectively.

At the Comex close: February gold dipped $1.90 to $1,320.40; March silver dropped 14 cents to $17.14; April platinum added $1.20, to $976.40; and March palladium rose $13.70 to $1,095.90 an ounce.