Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinGold edged slightly lower, dipping 0.3% in quiet trading, closing the New York session at $1,227.40 after trading in a narrow 1% range overnight.

Fed minutes from the Sept. 25 – 26, FOMC meeting, released after the New York session close, did little to move the precious metals markets. The minutes revealed that Fed policymakers were unanimous in their decision to raise U.S. interest rates 0.25% last month. The minutes also indicated the FED was considering a modestly tighter or “restrictive” monetary policy going forward due to continuing U.S. economy strength. “Almost all participants saw little change in their January assessment of the economic outlook, although a few of them judged that recent data pointed to a pace of economic activity that was stronger than they expected earlier in the year,” according to the minutes. Analysts continue to expect a 4th Fed rate hike of 0.25% this year at the conclusion of their Dec. 18-19 meeting.

While precious metals prices were little changed following the Fed news, stocks reacted adversely, giving up gains made earlier in the session and closing down on the day. Stocks, which have thrived on cheap money, have seen increased volatility over the last several weeks as yields on U.S. treasuries have punched higher. The U.S. dollar index gained 0.50% to 95.59 following the Fed news, but the stronger dollar had little impact on precious metals prices, despite the natural inverse correlation between the dollar and gold.

At the Comex close: December gold slid $3.60 to $1,227.40; December silver futures dipped 4 cents to $14.66; January platinum fell $6.10 to $840.60; and December palladium fell $9.90 to $1,064.00 an ounce.