Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close at a one-week high above $1,257 after the Fed's somewhat dovish rate hike undercut the dollar, boosting alternative stores of value.

As expected, the Federal Reserve raised interest rates by a quarter-point at the end of its two-day meeting yesterday. But the central bank surprised investors by sticking to its cautious approach going forward, keeping its 2018 projection of three hikes unchanged despite stronger economic growth. Persistently low inflation and a change in Fed leadership, with Jerome Powell set to replace Janet Yellen in February, has tempered the outlook.

The dollar came under pressure following the dovish rate increase, dropping in early trade today before rebounding into slight gains after the ECB and BOE left interest rates and easing unchanged.

The Dow dropped 0.3%, breaking a five-day win streak as concerns mount about the progress of tax reform through the Senate. Marco Rubio joined a handful of undecided Senators and the two chambers of Congress try to reconcile their confecting versions of the bill.

The other precious metals were also higher, with silver and platinum adding 0.4% and 0.7%, respectively, while palladium jumped and 2.5% to the highest level in 16 years.

At the Comex close: February gold gained $8.50 to $1,257.10; March silver added 12 cents, to $15.93; January platinum picked up $5.80 to $861.20; and March palladium climbed $23.65 to $1,028.70 an ounce.