Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.6% to close above $1,771 despite some better economic data as Treasury yields and the dollar pulled back further ahead of tomorrow's much-awaited speech by Fed Chair Jerome Powell. It was the metal's third straight day of gains and highest finish in a week.

The US economy was a little less weak in the second quarter, according to revised government data, with GDP contracting 0.6% rather than the 0.9% initially reported. Slightly better consumer spending and business investment accounted for the improvement.

Separately, initial jobless claims slipped to a one-month low, suggesting the increase in layoffs many feared because of slowing growth have not materialized.

Wall Street ran with the upbeat data. The Dow and S&P 500 added 0.8% and 1.2%, respectively, while the Nasdaq picked up 1.4%.

Some softer rhetoric from regional Fed officials also lifted risk appetite. Kansas City Fed President Esther George and Atlanta Fed President Raphael Bostic each left the door open to a September rate hike of 50 basis points, as opposed to the 75-point increase urged by several others over the past week.

Tomorrows' speech by Fed Chair Powell is expected to give better direction on whether the Fed pivots away from jumbo hikes or leans into them despite the rising risks of recession.

Benchmark 10-year Treasury yields retreated to just over 3% on the uncertain rate view, buoying gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Similarly, the dollar dropped another 0.2% against major rivals, lifting gold and other commodities by making them less expensive in other currencies, bolstering overseas demand.

The other precious metals were also higher, with silver adding 1.1% while platinum and palladium rose 0.8% and 5.6%, respectively.

At the Comex close: December gold rose $9.90 to $1,771.40; September silver climbed 21 cents to $19.12; October platinum picked up $7.10 to $873.90; and September palladium rallied $114.20 to $2,139.80 an ounce.