Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.2% but held above $1,330 as the dollar edged higher and equities rallied, reducing demand for alternative stores of value. The metal fell 1.7% for the week after the minutes from the Fed's January meeting led to speculation that the Fed might raise interest rates four times this year.

The dollar added 0.2% against major rivals, assisted by weakness in the euro after Eurozone inflation slowed in January, easing pressure on the ECB to tighten monetary policy. A stronger dollar typically pressures gold and other commodities priced in it for international trading by making them more expensive overseas.

US stock markets jumped sharply higher, with the Dow adding 1.3% and the S&P 500 1.6%, as rising bond yields improve the profit outlook for banking shares.

St Louis Fed President James Bullard said yesterday that four rate hikes are unlikely this year, claiming a fourth hike would make monetary policy "restrictive" with inflation below the 2% target. Separately, the Fed's semi-annual report to Congress noted persistent forces in the global economy leading to low inflation and signaled that three hikes in 2018 were likely to be sufficient.

The other precious metals were mixed for the day but lower for the week. Silver dropped 0.6% today for a weekly decline of 0.8%. Platinum edged down less than 0.1% for a weekly loss of 1.3%. Palladium picked up 0.7% on the day but still lost 0.2% this week.

At the Comex close: April gold slipped $2.40 to $1,330.30; March silver dropped 10 cents to $16.48; April platinum dipped 60 cents to $998.80; and March palladium rose $7.65 to $1,041.15 an ounce.