Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold slipped 1.3% to close under $3,733 as rebounds in Treasury yields and the dollar prompted investors to take profits from bullion's record-high finishes during the previous two sessions. Silver shed 1% to end at $42.78 an ounce.

Speaking publicly for the first time since last week's rate cut, Fed Chair Jerome Powell said yesterday that the central bank is facing a "challenging situation," trying to walk a line between rising inflation and weak job growth. While offering no specifics on monetary policy, he struck a cautious tone about future rates cuts.

Benchmark 10-year Treasury yields edged up on Powell's equivocations, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking higher with yields, the dollar rebounded 0.6% against major rivals, especially the euro, which drifted lower after German business morale fell unexpectedly in September. Stronger dollar weighs on gold and other commodities by making them more expensive in other currencies, limiting overseas demand.

Platnum and palladium dropped 0.8% and 1%, respectively.

At the New York spot close: gold fell $48.50 to $3,732.10; silver shed 42 cents to $43.78; platinum lost $12.50 to $1,472.75; and palladium dropped $12.10 to $1,215.05 an ounce.