Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.3% to close the regular session at $1,092.60 as traders hedged their positions ahead of the Fed's statement on monetary policy. It then recouped those losses and more, rebounding to $1,096.40 in electronic trade after the Fed refrained from raising interest rates and left prospects for a September hike uncertain.

Following its two-day meeting, the FOMC issued a press release saying the economy is continuing to strengthen and the job market is improving. While the upgraded assessments left the door open for a September hike, the central bank did not give clear direction on its plans for tightening interest rates. Instead, it stated the need for "further improvement" in labor market and more evidence that inflation will rise to its 2% target.

Equities, the dollar, and gold all traded higher immediately after the Fed's statement, suggesting that its ambiguity offered something for everyone. The fact that rates were unchanged and could remain that way beyond September boosted equities and gold, which thrive when money is cheap and liquidity plentiful. The lingering possibility of a September hike boosted the dollar because higher rates mean more yield for dollar deposits.

The other precious metals were mixed, with silver closing 0.7% higher while platinum and palladium fell 0.2% and 1%, respectively.

At the Comex close: August gold slid $3.60 to $1,092.60; September silver gained 10 cents to $14.74; October platinum dipped $1.50 to $984.90; and September palladium lost $6 to $615.60 an ounce.