Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.9% to close at an 11-week high near $1,220 as softening in equities and the dollar boosted demand for alternative assets.

The dollar rolled back against major rivals, falling to an 11-week low, as markets digested yesterday's decision by the Fed to hold interest rates unchanged. A weaker dollar typically boosts gold because it is denominated in dollars internationally and becomes less expensive in other currencies.

While noting strength in the economy, the central bank surprised the markets by giving no indication of when it might raise interest rates again, leading traders to think that a March hike might be off the table. Without hiking in March, thinking goes, the Fed might not achieve the three hikes this year were telegraphed in December.

U.S. equities also backtracked, with the Dow slipping as much as 0.2%, on concerns about Trump's antagonistic approach to diplomacy. Last week, he got into a testy exchange with the President of Mexico over the wall and trade. Yesterday, he put Iran "on notice" for recent missile testing, suggesting deeper friction to come. And today, he berated the Prime Minister of Australia, a staunch U.S. ally, over refugees.

The other precious metals finished lower, with silver and platinum each dipping 0.1% while palladium lost 0.5%.

At the Comex close: April gold gained $11.10 to $1,219.40; March silver dipped down by 2 cents to $17.43; April platinum slid 20 cents to $999.60; and March palladium fell $3.85 to $759.05 an ounce.