Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1% to close under $3,644 on profit-taking as risk appetite returned after the Fed's rate cut and forecast of further easing. The move was seen as a mild correction from recent all-time highs. Silver dipped slightly to finish at $41,71 an ounce.

The Fed delivered a quarter-point rate cut yesterday, its first in nine months, and forecasted another two of the same size in the fourth quarter, with most members penciling in a total of 75 basis points this year.

Wall Street cheered the dovish pivot, with the rate-sensitive Nasdaq jumping 1% while the Dow and S&P 500 added 0.3% and 0.5%, respectively, on the promise of cheaper money.

Reflecting the whetted risk appetite, Benchmark 10-year Treasury yields surged above 4.1% as investors shifted away from safety. Rising yields weigh on gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking higher with yield, the dollar added 0.5% against major rivals, pressuring gold and other commodities by making them pricier overseas.

Platinum added 0.4% while palladium slipped 0.3%.

At the New York spot close: gold fell $38.10 to $3,643.70; silver edged down less than 2 cents to $41.71; platinum picked up $6.10 to $1,389.75; and palladium slipped $3.20 to $1,169.15 an ounce.