Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to close under $1,793 on profit-taking as yields and the dollar rose ahead of this week's CPI data and Fed meeting. The metal had advanced in each the previous four sessions.

Tomorrow's release of the November consumer price index is expected to show annual inflation slipping to 7.3%, down from 7.7% in October. The core CPI, excluding volatile food and energy costs, is projected to be 6.1%.

But other recent data have signaled the economy may not be slowing as quickly as the Fed had hoped, leading to uncertainty about how aggressive the central bank will be at this week's meeting. The Fed has

The November jobs report was much stronger than expected, with more than 260,000 new jobs added. And the US services sector, which constitutes more than two-thirds of the economy, grew far more than forecast last month.

The Fed has been trying to reduce the hottest inflation in 40 years by aggressively raising rates to slow the economy. At the same time, Fed Chair Powell is growing increasing concerned that too much monetary tightening too quickly will plunge the economy into recession.

Fed funds traders project a 75% likelihood that the Fed will raise rates by 50 basis points, which is less than the previous four hikes but still large by historical standards. The Bank of England and European Central Bank are also expected to hike by 50 basis points this week.

Benchmark 10-year Treasury yields pushed above 3.6% on the prospect of higher rates, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The dollar tracked higher with yields, adding 0.2% against major rivals. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies, limiting overseas demand.

The other precious metals were also lower, with silver dropping 1.3% while platinum fell 2.7% and palladium shed 4.3%.

At the Comex close: February gold fell $18.40 to $1,792.30; March silver slid 31 cents $23.40; January platinum dropped $28.20 to $1,008; March palladium lost $84.70 to $1,884.10 an ounce.