Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rose 0.7% to close at $1,164.50, the highest level since early July, as speculation deepens that the Fed will not increase interest rates this year. It was the metal's sixth winning session out of the last seven for a net gain of 4.5%.

Fed Governor Lael Brainerd said emphatically today that the Fed should not raise rates until it can be more certain that the global slowdown, led by China, won't derail the U.S. recovery. Citing global deflationary pressures and other international risks, she said it is time only for "watching and waiting," not raising rates. Speaking separately in Chicago, Charles Evans of the Chicago Fed said October is still on the table, although he sees waiting until mid-2016 as the "best choice."

The dollar receded to a three-week low against a basket of rivals as traders price-in the lower odds of a near-term rate increase. A lower dollar typically supports gold and other commodities denominated in it for international trade by making them less expensive to users of other currencies.

The other precious metals were mostly higher, with silver adding 0.2% and platinum jumping 1.5% while outlier palladium dropped 1.9% on profit-taking from recent strong gains.

At the Comex close: December rose $8.60 to $1,164.50; December silver added 4 cents, to $15.86; January platinum gained $14.50 to $995.90; and December palladium lost $13.50 to 694.65 an ounce.