Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold ended nearly flat, inching down 50 cents to close under $1,504, as early gains gave way to profit-taking and pressure from a rising dollar. The metal then jumped above $1,511 in electronic trade after Fed Chair Jerome Powell signaled openness to further reductions in interest rates.

Tension between the US and China increased today after the White House added some top Chinese tech companies its trade blacklist, drawing a stern rebuke from Beijing. Coming ahead of trade talks in Washington starting on Thursday, the move undermined optimism for progress in the 15-month trade war.

Gold quickly jumped above $1,512 on safe-haven inflows only to surrender those gains by close as traders took profits and the dollar rose 0.2% against major rivals. A stronger dollar weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

After hours, however, gold reclaimed most of its earlier gains to rise above $1,511 on dovish comments from Fed Chair Jerome Powell, who said the central bank is open to additional rate cuts to offset growing global economic risks. CME FedWatch now forecasts an 86% likelihood of another quarter-point reduction at the end of October, up from 75% yesterday and 62% one week ago.

Lower rates pressure the dollar by making it less attractive to Forex investors seeking higher yield, supporting gold in turn by making it less expensive overseas.

The other precious metals were higher, with silver rising 0.9% while platinum and palladium added 0.2% and 0.3%, respectively.

At the Comex close: December gold dipped 50 cents to $1,503.90; December silver gained 16 cents to $17.70; January platinum picked up $1.80 to $890.10; and December palladium rose $4.40 to $1,650.70 an ounce.