Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Extending its rally, gold gained 0.7% to close above $1,294 as a dovish rate outlook from the Fed combined with worries over the Trump administration's ability to execute its pro-growth agenda, driving investors into safe havens.

Yesterday's release of minutes from the Federal Reserve's July meeting underscored concerns about low inflation, with an increasing number of members advocating a slower approach to future rate hikes. Worries about whether President Trump can enact policies to boost growth, given recurrent turmoil in the White House and a fractious Congress, also surfaced in the meeting.

CME FedWatch, which tracks Fed fund futures to gauge the probability of future hikes, dropped the odds of another rate increase this year to just 40%, down from 47% two days ago. Lower rates weigh on the dollar, supporting gold and other commodities priced in it for international trade by making them less expensive to users of other currencies.

Fallout from the President's controversial statements following the riots in Charlottesville also boosted demand for gold after he disbanded his major business advisory panels in response to a wave of resignations by CEO-members. Traders view the break with business leaders as further undermining his pro-business agenda.

The other precious metals also rose, with silver and platinum booth adding 0.7%. Palladium jumped 1.8% to more than a 16-year high on growing global supply concerns.

At the Comex close: December gold gained $9.50 to $1,292.40; September silver added 11 cents, to $17.05; October platinum picked up $7.20 to $981.70; and September palladium jumped $15.95 to $926.15 an ounce.