Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close near $1,497 ahead of the conclusion of the Fed's meeting on monetary policy. The metal then fell briefly electronic trade on the release of a relatively hawkish Fed policy statement, only to rebound sharply, rising above $1,499, after Fed Chair Jerome Powell signaled that rates will stay low for a while.

As expected, the Federal Reserve cut its benchmark rate by a quarter-point for the third time this year, citing "global developments" and "muted inflation pressures." But the central bank also suggested that rate cuts might be done for now, as the statement notably eliminated a prior pledge to "act as appropriate" to sustain the US economic expansion.

Gold quickly fell to under $1,484 as traders speculated that the Fed's hawkish statement meant rates might reverse course in the near future. Higher rates tend to weigh on gold and other commodities by boosting the dollar, thereby making them more expensive overseas.

But the metal rebounded just as quickly, jumping above $1,499 after Powell assuaged these fears in his post-meeting press conference, stating explicitly that he would need to see "a significant move up in inflation before we could consider raising rates."

The dollar fell 0.3% on the rate cut while equities rallied, with the S&P 500 rising 0.3% to close at a new record high.

Meanwhile, government data showed the economy expanded at a soft 1.9% in Q3, as business investment, consumer spending, and government spending all slowed. And ADP reported private payrolls added a modest 125,000 new jobs in October, while September's total was revised down from 135,000 to just 93,000.

The other precious metals were also higher, with silver rising 4 cents while platinum and palladium climbed 0.6% and 2.1%, respectively.

At the Comex close: December gained $6 to $1,496.70; December silver rose 4 cents to $17.87; January platinum added $5.50 to $930.60; and December palladium jumped $37 to $1,792.10 an ounce.