Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down $1 to close at $1,328.50 as traders hedged positions ahead of Fed Chair Jerome Powell's Senate testimony on monetary policy. The metal then rebounded above $1,330 in electronic trade when Powell struck a dovish tone by underscoring the Fed's reticence to raise interest rates.

Speaking the Senate Banking Committee, Powell said "conflicting signals" in the economy reinforce his belief that the central bank must take a "patient approach" to future rate hikes. Citing slowing global growth, Brexit, trade conflicts, and volatile financial markets, the Fed Chair emphasized that future policy changes will be dependent on data.

Powell's remarks echoed the Fed's policy statement following the last FOMC meeting, which most economists took to mean no more hikes to the end of 2019, if at all. The Fed futures market even began pricing in a rate cut for December. A pause in rate hikes is bullish for gold because it would remove a primary source of ongoing dollar strength.

The dollar slipped after Powell's testimony, supporting gold and other commodities priced in it for global trade by making them less expensive overseas. A sharp rally in the UK pound also pressured the buck after PM Theresa May opened the door to a March vote to delay Brexit.

The other precious metals were higher before and after Powell's speech. Silver inched up a fraction of a penny before adding 0.1% after hours. Platinum rose 0.8%, then adding another 0.1%. Palladium rose 1.8% and held it after hours.

At the Comex close: April gold edged down $1 to $1,328.50; March silver less than a cent, to $15.83; April platinum gained $6.80 to $860.40; and March palladium jumped $27 to $1,523.50, boosted by a threatened miner strike in South Africa.