Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close near $1,964 despite higher bonds yields and some upbeat US data as traders tread water ahead of tomorrow's decision on interest rates by the Fed.

The markets are pricing in a probability of 99% that the Fed will increase its benchmark rate by 25 basis points at the conclusion of its two-day meeting on monetary policy. What happens after that is far less certain.

June data showing consumer inflation falling to 3% and the red-hot job market cooling somewhat has prompted Fed fund futures traders to increase their bets that the central bankers may be done with hikes after tomorrow. The odds of a second increase by December year stand at just 35%, while the odds of a rate cut in January stand at 25%.

But some stronger recent data might complicate that outlook. Consumer confidence rose more than expected in July to a two-year high, the Conference Board said today. And Case-Schiller reported home prices rising or the fourth straight month, indicating a resurgence in the crucial housing market.

Faced with uncertainty, the gold market was little changed today as traders prepare to scour tomorrow's policy statement and speech by Fed Chair Jerome Powell for any clues about forward guidance. A hawkish lean will likely pressure the metal while a dovish tilt will support it.

The dollar was virtually flat against major rivals while benchmark 10-year Treasury yields climbed slightly higher, to just above 3.9%, after the upbeat data.

The other precious metals were higher, with silver and palladium adding 1% each while platinum picked up 0.7%.

At the Comex close: August gold rose $1.50 to $1,963.70; September silver climbed 24 cents to $24.82; October platinum picked up $7.10 to $976.60; and September palladium advanced $12.40 to $1,281.20 an ounce.