Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down 0.1% to close under $1,788 in choppy trading as pressure from hawkish Fed talk barely overcame haven demand spurred by worries about the US economy. The metal rose above $1,808 midday before receding.

After the Fed delivered a rate hike of 50 basis points last week, Chairman Powell said the central bank will continue raising rates in 2023 despite the threat of recession, with the terminal rate projected to be more than 5%.

Powell's message was reinforced late in the week by regional Fed officials. New York Fed President John Williams and San Francisco Fed President Mary Daly said separately that interest rates will have to go much higher to choke off inflation, prompting fears that the Fed will overdo.

And today, former New York Fed President William Dudley told Bloomberg that investors should not fight the Fed.

Benchmark 10-year Treasury yields rose to just under 3.6% on the hawkish talk, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Gold was supported by a slightly weaker dollar which slipped 0.2% against major rivals after German business morale improved more than expected, lifting the euro. A weaker dollar helps gold by making it cheaper overseas.

The other precious metals were also lower, with silver sliding 0.6% while platinum and palladium fell 1.3% and 2.4%, respectively.

At the Comex close: February gold dipped $2.5 to 1,787.70; March silver slid 13 cents to $23.20; January platinum dropped 12.30 to $987.70; and March palladium shed $41.70 to $1,664.90 an ounce.