Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold dipped 0.3% to close above $2,324 as a stronger dollar and hawkish comments from a Fed official prompted traders to take profits from yesterday's 1% rise. Silver also slipped 0.3% to finish at $27.30 an ounce.

Minneapolis Fed President Neel Kashkari said today that inflation because has stalled because of strength in the housing market, the Fed might have to keep interest rates high for the rest of the year and possibly even increase them.

The comments came after Monday's dovish comments from Tom Barkin of the Richmond Fed and John Williams of the New York Fed President indicating that rate cuts, not hikes, would be the Fed's next move.

The dollar picked up 0.3% against major rivals, buoyed by Kashkari's statement and a sharply lower yen. A rising dollar pressure gold and other commodities by making them pricier in other currencies, limiting overseas demand.

Gold's retreat was backstopped by lower 10-year Treasury yields, which fell to a four-week low as last week's soft jobs and GDP data caused Fed fund futures traders to increase their bets that the Fed will cut rates by nearly 50 basis points this year.

Platinum rose 2.4% while palladium slid 0.4%.

At the New York spot close: gold dipped $7 to $2,324.20; silver slipped 7 cents to $27.30; platinum picked up $23.50 to $988.40; and palladium shed $3.50 to $979.70 an ounce.