Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.8% to close above $3,670 despite rising Treasury yields and a stronger dollar as traders digested this week's rate cut from the Fed. Bullion gained 0.6% for the week to notch its fifth straight weekly win. Silver climbed 2% for the day and 0.4% for the week to finish at $42.54 an ounce.

The Fed voted for its first rate cut in nine months this week, lowering its benchmark by 25 basis points to 4%-4.25%. In addition, its so-called dot plot of future interest rates showed two more similar reductions this year.

But the central bank's forward guidance was not entirely dovish, with roughly half the members penciling in fewer rate cuts and Fed Chair Powell warning that they are "not in any hurry" to ease further because of persistent inflation and ongoing trade turmoil.

The markets largely heard what they wanted to hear. Equities have rallied on the prospect of easier money while the dollar and Treasury yields have strengthened on the equivocal outlook. Gold and silver, which thrive in economic and political uncertainty, corrected briefly and resumed their upward march.

Platinum added 0.7% for a weekly rise of 0.6%. Palladium slid 1.1% today and 5.9% this week.

At the New York spot close: gold gained $27.80 to $3,671.50; silver surged 83 cents to $42.54; platinum picked up $10.10 to $1,408.85; and palladium dropped $12.60 to $1,156.55 an ounce.