Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 1.1% to close at a five-week low under $1,288 as the dollar rallied on speculation that the Fed will raise rates again this year. The metal was also pressured by rising equities after President Trump promised to slash corporate taxes.

Extending yesterday's rise, the dollar picked up 0.4% to hit a one-month high against major rivals on expectations that the Federal Reserve will raise interest rates by another quarter point at their December meeting. Fed Chair Janet Yellen said on Tuesday that "moving too slowly" in normalizing rates would risk destabilizing markets despite persistently low inflation.

CME FedWatch, which uses trading in Fed fund futures to forecast rate changes, increased the odds of a December hike to 81%, up from 72% yesterday and 38% a month ago. Higher rates boost the buck by attracting foreign exchange investment seeking higher yield. A stronger dollar pressures gold and other commodities priced in it by making them more expensive in other currencies.

Rising equities also undercut demand for safe havens, with the S&P 500 gaining 0.4% and Nasdaq 1.2%. Stocks were boosted in part by the unveiling of President Trump's plan to slash corporate taxes in half and cut the top rate for individuals. Risk appetite was also stoked by data showing orders for durable goods jumped 1.7% in August.

The other precious metals were mostly lower, with silver and platinum each sliding 0.3% while palladium gained 1.2%.

At the Comex close: December gold dropped $13.90 to $1,287.80; December silver slid 6 cents to $16.83; January platinum lost $3.20 to $925.50; and December palladium added $11.05 to $925.50, achieving parity with platinum for the first time in 16 years.