Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged 0.1% higher to close above $1,420 despite a slightly higher dollar as traders anticipate lower interest rates coming from this week's meeting of the Federal Reserve.

The Fed is almost universally expected to reduce benchmark rates by a quarter-point at the end of its two-day meeting, which begins tomorrow. Fed Chair Jerome Powell and many prominent committee members have telegraphed the move as an inoculation against slowing global growth and burgeoning trade wars.

What remains uncertain, however, is how dovish the Fed will be in its post-meeting statement. If it signals the start of a new cycle of accommodative policy, the markets are likely to react strongly, sending the dollar lower and gold and equities higher. If the cut appears to be an isolated event, the changes may be minimal, as the market has already priced it in.

Gold's gains were capped by a slightly higher dollar, which added 0.1% against major rivals. The buck was supported by a sharp plunge in the UK pound after new PM Boris Johnson declared that a no-deal Brexit remains a real possibility.

Oli prices rose 1.2% on the prospect of lower U.S. interest rates. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 0.3% while platinum and palladium rose 1.6% and 1.5%, respectively.

At the Comex close: August gold gained $1.10 to $1,420.40; September silver added 4 cents, to $16.44; October platinum climbed $14.10 to $881.90; and September palladium rallied $22.80 to $1,553.40 an ounce.