Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close at $1,970 after hawkish Fed comments boosted yields and the dollar, undercutting alternative stores of value.

Fed Governor Michelle Bowman said today that "additional rate increase will likely be needed" to put inflation on the path to "the 2% target." While acknowledging that the recent inflation data has been positive, she wants to see "consistent evidence" of falling prices in coming months.

Separately, New York Fed chief John Williams was more measured, declaring it "an open question" whether additional hikes will be needed. But he added that the Fed will "probably need more restrictive policy" if the economy re-accelerates.

Benchmark 10-year Treasury yields climbed to just under 4.1% after the Fed comments, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Tracking higher with yields, the dollar rebounded slightly after sliding to three-week low on Friday following a weaker-than-expected nonfarm payrolls report showed the economy adding 187,000 job in July.

The other precious metals were also lower, with silver losing 2% while platinum dipped 0.2% and palladium dropped 2.3%.

At the Comex close: December gold slid $6.10 to $1,970; September silver lost 48 cents to $23.23; October platinum shed $1.60 to $926.90; and September palladium futures dropped $28.40 to $1,236.20 an ounce.