Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up slightly, closing at a one-week high above $1,299 despite upbeat US economic data and a rising equities, as Jerome Powell signaled his intention to maintain a gradual approach to rate hikes as the next Fed Chair.

Testifying before the Senate Banking Committee, Powell made it clear that he will continue the policies of his predecessor, Janet Yellen, when she leaves the Fed in February. Yellen has struck a relatively dovish course on monetary policy, raising interest rates slowly and letting the Fed's balance sheet gently shrink.

Powell's comments calmed nerves among traders who feared a more aggressive schedule of rate hikes would follow Yellen's tenure. Higher rates typically support the dollar by attracting forex investment seeking higher yield, pressuring gold in turn by making it more expensive in other currencies.

Consumer confidence jumped a 17-year high in November, propelled by a strong job market and two straight quarters of 3% growth in GDP. Home prices rose at the fastest pace in three years during Q3, adding to the wealth-effect felt by many Americans.

Wall Street surged as Powell's stay-the-course testimony combined with upbeat data to drive the Dow and S&P 500 higher by 1%.

Stocks received a further bounce after the Senate Budget Committee advanced tax reform along party lines to a possible vote this week. A promised cut in corporate taxes would propel higher profits and boost shares.

The other precious metals were mostly higher, with platinum and palladium rising 0.2% and 2%, respectively, while outlier silver dropped 1.2%.

At the Comex close: February gold added 30 cents, to $1,299.20; March silver lost 20 cents to $16.92; January platinum picked up $2 to $952.80; and March palladium jumped $19.17 to $1,020.65, a new 16-year high.