Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained another 0.7% to close at $1,223 as dovish comments from a second Fed member pressured the dollar, spurring demand for alternative stores of value. The metal ended the week with a rise of 1.2%.

Fed Vice Chair Richard Clarida said today that global economic growth is faltering and US interest rates are nearing a neutral position, implying the pace of increases may slow in 2019. Clarida echoed a statement made yesterday by Atlanta Fed President Earl Bostic, another voting member of the FOMC, who also said a neutral rate is close at hand. Neutral rates neither simulate nor constrain economic growth.

Clarida's comments gave life to equities, helping the Dow rise 0.5% and the Global Dow 0.4% on the prospect of a ceiling on corporate borrowing costs. Also supporting stocks, President Trump suggested a trade agreement with China is getting closer and another round of tariffs might not be imposed.

The dollar fell 0.6% against major rivals as traders speculated that Clarida's dovishness might mean fewer rate hikes in 2019. Higher rates support a stronger dollar, which in turn pressures gold and other commodities by making them more expensive in other currencies.

The Fed reported US manufacturing rose 0.3% in October, marking five straight months of growth. But the strength of the sector is unlikely to continue, according to the report, because of increasing weakness in global manufacturing, especially in China.

Oil rebounded for a third session, rising 0.3% on expectations that OPEC and its partners will cut production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were higher for the day but mixed for the week. Silver gained 0.8% today and 1.7% this week. Platinum added 0.2% today but slipped 0.1% this week. Palladium picked up another 1.5% for a 5% weekly win.

At the Comex close: December gold for delivery gained $8 to $1,223; December silver rose 12 cents to $14.38; January platinum picked up $1.30 to $846.60; and December palladium futures jumped $17.20 to $1,154.60 an ounce.