Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold inched down 0.1% to close under $3,332 as Treasury yields and the dollar rose behind some downbeat data ahead of this week's Fed meeting in Jackson Hole. Silver rose 0.4% to finish at $38.05.

US homebuilder sentiment fell in August to the lowest level in 30 months, with affordability and economic uncertainty suppressing sales. More than one-third of residential construction firms report offering incentives to lure buyers, according to the NAHB.

Combined with last week's reported surge in wholesale inflation and fall in consumer sentiment, the data further clouds the outlook for rate cuts from the Fed. The release of minutes from the Fed's July meeting, and Chairman Powell's speech from Jackson Hoile on Friday should provide more clues.

Fed funds futures traders project an 83% likelihood of a quarter-point cut in September, down from 93% last week, with the odds of another in October at 43%, down from 55% last week.

Hopes for progress in ending the Russia-Ukraine war boosted yields and the dollar ahead of this week's meeting between Donald Trump and Volodymyr Zelenskyy.

Benchmark 10-year Treasury yields pushed up near 4.34, weighing on gold by increasing the opportunity cost for holding it. The dollar added 0.3%, making gold and other commodities pricier overseas.

Platinum slipped 0.3% while palladium rose 0.6%.

At the New York spot close: gold dipped $4.30 to $3,331.70; silver added 16 cents, to $38.05; platinum slid $4.60 to $1,333.45; and palladium rose $4.70 to $1,127.15 an ounce.