Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close near $1,927 as yields and the dollar rose ahead of the release of the Fed minutes from its June meeting. All three assets extended those moves, with gold slipping under $1,924, after the minutes showed the central bankers to be more hawkish than expected.

While the vote to pause rate hikes in June was unanimous, the Fed's minutes indicated that several members advocated increasing rates for the eleventh straight meeting but went along with the majority decision.

What's more, there was near-unanimous agreement that inflation remains "unacceptably high," and interest rates will need to increase in coming meetings. The Fed's dot-plot forecast projects two more hikes of 25 basis points this year.

Benchmark 10-year Treasury yields surged above 3.9% on the hawkish subtext to the recent rate pause. Rising yields are a headwind for gold because they increase the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked higher with yields, adding 0.3% against major rivals. A stronger dollar weighs on gold by making it pricier in other currencies, limiting overseas demand.

The other precious metals were higher, with silver rising 1.3% while platinum and palladium picked up 1% and 2.5%, respectively.

At the Comex close: August gold dipped $2.40 to $1,927.10; September silver rose 29 cents to $23.40; October platinum picked up $9 to $925; and September palladium climbed $30.90 to $1,257.90 an ounce.