Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.1% to close under $1,319, a three-week low, after new Fed Chief Jerome Powell made hawkish comments on monetary policy before Congress, boosting the dollar and diminishing alternative stores of value.

Addressing Congress for the first time as Fed Chair, Powell generally struck an even tone, emphasizing that the Fed will continue its current path of gradual rate hikes with an eye towards supporting economic growth while allowing inflation to rise back to 2%.

During questioning, however, he turned somewhat more hawkish, offering his personal view that the economy is getting stronger and inflation should begin to rise. Traders jumped on these comments as a signal that the Fed may raise interest rate four time this year, one more than forward guidance has indicated. CME FedWatch raised the odds of a fourth hike to 34%, up from 24% yesterday.

The dollar gained 0.6% on Powell's testimony, pressuring gold and other commodities priced in it for global trade by making them more expensive overseas.

Orders for durable goods fell 3.7% in January, and an important measure of business investment fell for a second month, according to government data. And the trade deficit swelled 3% in January, creating headwind for GDP growth. The Atlanta Fed lowered real GDP growth estimate to 2.6% in the first quarter.

The other precious metals were also lower, with silver dropping 1.2% while platinum and palladium lost 1.7% and 2.4%, respectively.

At the Comex close: April gold lost $14.20 to $1,318; May silver dropped 20 cents to $16.35; April platinum shed $17.20 to $984.60; June palladium shed $25.40 to $1,029.20 an ounce.