Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $1,306 as the Fed ended its two-day meeting on monetary policy. The metal then rebounded above $1,314 in electronic trade on a relatively dovish Fed statement before sliding back to its closing levels as the dollar rallied.

The Fed kept interest rates unchanged, as expected, despite recent evidence that inflation is beginning to climb. The Fed's post-meeting statement was more dovish than expected, signaling that the central bank is ">unlikely to accelerate the pace of rate hikes beyond three for 2018 despite recent signs of rising inflation.

Many analysts were anticipating a more aggressive stance, given that the Fed's preferred measure of inflation, the PCE index, rose to 2% annualized for the first time in a year. Fed Chair Jerome Powell said the current plan for gradual rate hikes is the appropriate "middle ground" with the so-called dot plot of projected hikes holding at two more this year.

The dollar initially fell on the Fed statement, boosting gold near $1,315 as traders backed off from speculation on faster rate hikes. But the buck reversed directions, edging 0.3% higher and pressuring gold, as the euro and pound fell on weak first-quarter GDP readings in the Eurozone and UK. A rising dollar weighs on gold and other commodities priced in it for global trade by making them more expensive overseas.

Upbeat US employment data also supported the US currency as ADP reported 204,000 new jobs were added in the private sector in April, marking six straight months over 200,000. The government's more-authoritative nonfarm payrolls report is due out Friday.

The other precious metals were mostly higher, with silver and palladium rising 1.5% and 2.6%, respectively, while platinum slid less than 0.1%.

At the Comex close: June gold dipped $1.20 to $1,305.60; July silver rose 25 cents to $16.38; July platinum inched down 40 cents to $893.80; and June palladium climbed $23.90 to $960.15 an ounce.