Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold was nearly flat, inching down 60 cents to close near $3,374, as the markets digested Friday's dovish lean from Jerome Powell while awaiting this Friday's PCE data for additional clues on interest rates. Silver shed 0.9% to finish at $38.68 an ounce.

Speaking at the Jackson Hole symposium of global central bankers on Friday, Chairman Powell suggested that current weakness in the US labor market "might warrant adjusting" the Fed's wait-and-see posture on rate cuts.

The markets ran with rate-cut hopes, lifting stocks and gold on Friday while pressuring yields and the dollar. But despite his dovish lean, Powell was ultimately noncommittal, signaling that inflation data between now and the next Fed meeting in September will also influence the rate view.

The Personal Consumption Expenditures data due on Friday should help clarify the outlook. The PCE is the Fed's preferred inflation gauge.

Benchmark 10-year Treasury yields bounce slightly higher on this reassessment, weighing on gold by increasing the opportunity cost for holding it instead of bonds.

The dollar rebounded 0.5% after falling on Friday, pressuring gold and other commodities priced in it for global; trade by making them pricier in other currencies.

Platinum and palladium fell 1.5% and 2.8%, respectively.

At the New York spot close: gold dipped 60 cents to $3,373.80; silver shed 35 cents to $38.68; platinum dropped $21 to $1,343,85; and palladium fell $32.20 to $1,102.65 an ounce.