Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.5% to close under $1,312 as the dollar rallied ahead of tomorrow's conclusion of the Fed's two-day meeting on monetary policy.

With the Fed almost certain to raise interest rates by a quarter-point this week, traders will be scouring the details of the post-meeting statements for clues about the number of hikes to come this year. Global growth has been synchronizing in recent months, leading to speculation that the Fed will stay ahead of other central banks by suggesting a fourth hike for 2018 in its future guidance.

While most analysts believe the FOMC will not change its December forecast of three hikes, the market in Fed fund futures says the odds are rising. CME FedWatch calculates a 31% chance of a fourth hike this year, up from 20% one month ago.

The dollar rallied 0.6% against major rivals on the hawkish rate view. A rising dollar pressures gold and other commodities by making them more expensive in other currencies.

The other precious metals were also lower, with silver dropping 0.9% while platinum and palladium lost 1% and 1.2%, respectively.

At the Comex close: April gold fell $5.90 to $1,311.90; May silver dropped 12 cents to $16.19; April platinum lost $9.40 to $945; and June palladium slid $11.50 to $975.90 an ounce.