Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 1.1% to settle just under $1,340 on signals that the Fed may further postpone reductions in monetary easing. Chicago Fed President Charles Evans said today he doesn�t have "tremendous confidence in the economy" as it is, and more signs of strength are needed before the taper, which might mean pushing it back until January. An influential, voting member of the FOMC, Evans is the first Fed official to publicly suggest delaying the taper until next year.

Separately, Narayana Kocherlakota of the Minneapolis said that Ben Bernake's successor as Fed Chair should resist calls to reduce stimulus and instead do "whatever it takes" to boost employment. And a third influential central banker, New York Fed President William Dudley, said the Fed may wait "a number of years" before raising interest rates regardless of when the taper starts. Monetary stimulus has supported higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

Gold was also supported by growing concerns over the debt-ceiling impasse. The Senate passed a budget bill stripped of House language requiring the defunding of Obamacare. The House must now approve the changes to avert a government shut-down on October 1, and few think it is ready to compromise. The dollar fell on the Fed statements and budget conflict while gold shot up, securing a 0.5% gain on the week. Silver and platinum each added 0.3% today but lost 0.4% and 1.2% for the week, respectively, while palladium rose 1.2% for the day and 1.4% for the week.

At the Comex close: December gold gained $15.10 to $1,339.20; December silver picked up 6.5 cents to $21.83; January platinum added $4.50, to $1,419.20; and December palladium climbed $8.35 to $731.80 an ounce.