Daily Gold Update

Source:Matt Warden, American Gold Exchange

Austin— Precious metals prices consolidated recent gains on Wednesday as the US Dollar dropped to a 15-month low following a weaker than anticipated ADP private-sector jobs report. The gold price held near its 7-week high while the silver price settled just under the one-month high it reached on Monday. US Dollar weakness continues to buoy the precious metals markets but recent strong gains in global equity markets and commentary by Federal Reserve officials have given the precious metals rally a reason to pause in recent trading days.

The US Dollar Index (DXY) fell to a 15-month low of 92.58 today before recovering slightly. The value of the US Dollar has fallen by more than 10% since the beginning of the year, weighed down by tepid GDP growth and political turmoil in Washington that has reduced the odds for healthcare reform and tax reform.

The ADP Employment Report showed 178,000 private-sector jobs were added to the US economy in July, down from the revised 191,000 private-sector jobs added in June, but roughly in line with consensus estimates of 173,000 new jobs. ADP employment data is examined for clues ahead of Friday�s more pivotal Labor Department�s July jobs report. Hiring has slowed from the stronger pace of 250,000+ new jobs per month added in the first quarter of 2017.

Cleveland Federal Reserve Bank President Loretta Mester and San Francisco Federal Reserve Bank President John Williams spoke today, both expressing support for the Federal Reserve to continue its policy of gradual increases of the federal funds rate and advocating for the shrinking of the Fed�s $4.5 trillion balance sheet to start later this year, in spite of recent weak inflation data and slowing job growth.

At the Comex close: December gold dropped $1.90 to $1,277.50; September silver dropper 4 cents, to $16.72; October platinum gained $4.70 to $954.20; and September palladium gained $1.15 to $894.55 an ounce.