Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinConsolidating yesterday's 1.3% surge, gold added 0.1% to close at $1,808.50 as traders maintained their bets that the Fed will delay reductions in monetary stimulus because of the Delta variant. It was the metal's fourth straight winning session and highest finish in three weeks.

The US dollar declined around 0.1% on speculation that this week's virtual Jackson Hole summit may signal the Fed's preference to continue supporting the economy at current levels for a while longer than many expected just a couple weeks ago.

Following its July meeting, most market participants expected the Fed to announce a tapering of stimulus to begin in October or November. But quickly rising infections and hospitalizations because of the Delta variant have clouded the outlook for economic growth in the fourth quarter and beyond.

Growth for service-oriented businesses fell to an eight-month low last month while manufacturing slid to a four-month low, according to IHS Market data released yesterday.

Last Friday, Dallas Fed chief Robert Kaplan said he is reconsidering his repeated calls for an early taper of the Fed's $120 billion-per-month bond purchases, known as quantitative easing. A renowned hawk on monetary policy, Kaplan has been the Fed's strongest advocate for reducing stimulus.

Tantamount to printing money, QE supports gold by undermining the dollar and pressuring yields. A weaker dollar buoys gold by making it less expensive in other currencies; lower yields support it by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Benchmark 10-year Treasury yields edged up slightly, capping gold's gains.

The other precious metals were mostly higher, with silver and palladium rising 1% and 2.4%, respectively, while platinum slipped 0.4%.

At the Comex close: December gold added $2.20, to $1,808.50; September silver gained 24 cents to $23.89; October platinum dropped $4 to $1,010 .10; and September palladium rose $57.40 to $2,442.50 an ounce.