Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Receding from a two-week high, gold dropped 0.6% to close the regular session under $1,349 as traders hedged their positions ahead of the release of the Fed's minutes from the July meeting. The metal then rebounded to as high as $1,357 in electronic trade after the minutes showed the majority of officials resistant to raising rates.

The FOMC was relieved that Brexit fallout had not damaged the economy as much as feared, according to July's minutes released today, and were pleased to see the job market regaining momentum after June's swoon.

However, only two members thought an immediate rate hike was in order. The rest argued that more data was needed, leaving the overall tone of the meeting less hawkish than the markets expected.

In a separate presentation today, St. Louis Fed President James Bullard reiterated his belief that one small rate hike is all that can be justified for a very long time to come. Arguing that the U.S. will be mired in a low-growth, low-inflation phase "for the foreseeable future," Bullard sees no need to raise key interest rates above 63 basis points, only slightly more than present levels.

The dollar turned lower after the relatively dovish minutes, supporting gold and other commodities denominated in it for international trade. Yields on Treasury bonds also fell.

The other precious metals also finished lower before recovering somewhat on the Fed minutes. Silver dropped 1.3% at the close before making up roughly half that loss after hours. Platinum dropped 1.2% and then regained roughly 1%, while palladium shed 1.5% before bouncing back around 0.2%.

At the Comex close: December gold dropped $8.10 to $1,348.80; September silver lost 25 cents to $19.63; October platinum fell $12.40 to $1,111.10; and September palladium slid $10.45 to $694.95 an ounce.