Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,774 as Treasury yields and the dollar rose ahead of the conclusion of the Federal Reserve's two-day meeting on policy. The metal then rallied above $1,782 and the dollar fell after the central bank solidly reaffirmed its easy money policies.

As expected, the Fed held interest rates near zero and promised quantitative easing will continue at $120 billion a month. While acknowledging that growth and employment have picked up in recent months, largely because of fiscal support and vaccinations, the Fed emphasized that monetary stimulus will continue unabated for the foreseeable future.

In the run-up to the meeting, investors were keying on whether the central bankers would signal concern about rising inflation. Fed Chair Powell, in his post-meeting presser, dismissed recent increases in inflation as "transitory," driven by things like supply disruptions and pent-up demand that will not affect monetary policy.

Treasury yields and the dollar both swung from gains before to losses after the Fed policy statement as investors realized that the money spigot will remain open indefinitely. Lower yields lift gold by reducing the opportunity cost for holding instead of bonds as a safe-haven asset. A weaker dollar supports gold and other commodities by making them cheaper overseas.

The other precious metals were lower for the session, with silver falling 1.2% while platinum and palladium dropped 3% and 0.8%, respectively.

At the Comex close: June gold dipped $4.90 to $1,773.90; May silver lost 32 cents to $26.09; July platinum fell $37.30 to $1,212.20; and June palladium shed $22.40 $2,930.20 an ounce.