Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained $2.80 to close at a 23-week high above $1,256, only to slide in after-hours trading following the Fed's decision to raise interest rates by a quarter-point for the fourth time this year.

All three major US stock indexes plunged after the announcement, with the Dow and S&P 500 posting declines of 1.5% while the Nasdaq lost 2.2%. The dollar erased an earlier loss of 0.3% on the Fed decision, rebounding to flat while gold slipped under $1,247.

Although widely expected, the rate move appeared to take financial markets by surprise, perhaps because of wishful thinking. Dovish recent comments from several Fed members, along with softer economic data and weakness in equity markets, had sparked some optimism that the central bank might forego a December hike.

Notably, despite market reaction to today's increase, the FOMC's forward guidance has become more dovish. Rather than three rate hikes projected for 2019, the central bank now sees two, with just one to follow in 2020. Fewer rate hikes should support higher gold prices next year.

The other precious metals also finished higher before pulling back post-Fed. Silver rose 0.8%, then slid to a loss of 0.3%. Platinum picked up 0.2% before falling to a 1.2% loss. Palladium jumped 1.9% in regular trading, then gave back 1% of that rise after hours.

At the Comex close: February gold rose $2.80 to $1,256.40; March silver gained 12 cents to $14.82; January platinum added $1.20, to $796; and March palladium gained $22.10 to $1,201.30 an ounce.