Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.8% to close under $1,302 as hawkish comments from Janet Yellen boosted the dollar, reducing demand for alternative assets. The metal was also pressured by profit-taking after gaining 1.3% over the previous two sessions.

Speaking in Cleveland, Fed Chair Yellen warned that "moving too gradually" in raising interest rates would risk overheating the labor market, causing a possible spike in inflation. The hawkish statement was widely interpreted as signaling her support for another rate increase of a quarter-point this year, despite stubbornly low inflation.

The dollar gained nearly 0.4% against major rivals as expectations for a December hike increased. CME FedWatch boosted the odds to more than 76%, up from 56% a week ago and 38% a month ago. Rising rates support the dollar by attracting foreign exchange investment seeking higher yield. A stronger dollar weighs on gold and other commodities priced in it by making them more expensive overseas.

Traders largely ignored some soft economic data. Consumer confidence slipped in September on fallout from hurricanes Irma and Harvey. New-home sales tumbled to an eight-month low in August, hampered by low inventory.

The other precious metals were mostly lower, with silver and platinum losing 1.5% and 1.6%, respectively, while outlier palladium picked up 0.5%.

At the Comex close: December gold slid $9.80 to $1,301.70; December silver dropped 26 cents to $16.88; January platinum lost $15.50 to $928.70; and December palladium added $4.75, to $914.45 an ounce.