Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.4% to close near $1,355 as the dollar weakened further on the heels of yesterday's release of dovish minutes from the July Fed meeting, boosting demand for alternative stores of value.

The FOMC was split in July over the need to raise interest rates, with only two members pushing for an immediate increase while the rest wanted stronger data on hiring, growth, and inflation. Although a September hike remains possible, odds have fallen to merely 12%, according the CME FedWatch calculator, and less than 50% for the rest of 2016.

The dollar dropped 0.6% to an eight-week low against major rivals, pressured by the Fed minutes and a strong rally in the British pound after reports that UK retail sales rose 1.4% in July, easing immediate worries about Brexit damage. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive in foreign markets.

Net-negative data from the Philly Fed also weighed on the buck. While business activity picked up slightly in the mid-Atlantic region, the employment index tumbled to a seven-year low and new orders fell to the lowest level since December.

The other precious metals also finished higher, with silver adding 0.5% while platinum and palladium jumped 1.6% and 3.7%, respectively.

At Comex close: December gold gained $5.90 to $1,354.70; September silver added 11 cents, to $19.76; October platinum climbed $17.50 to $1,132.20; and September palladium jumped $25.85 to $717.55 an ounce.