Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close above $1,978 as the dollar slid further on speculation that the interest rates will stay low. But the metal finished August down 0.4% for its first monthly decline since February as traders chased higher stock prices.

The recent dovish turn by the Federal Reserve continued to weigh on the dollar, pushing it down another 0.3% against major rivals and putting it on track for its fourth straight monthly decline.

Speaking last week at a virtual version of the annual Jackson Hole summit, Fed Chair Jerome Powell unveiled a new framework for managing monetary policy called inflation averaging. Rather than raising interest rates pre-emptively to choke off inflation when it reaches 2%, the central bank will now allow inflation to rise higher than that target to offset times of lower inflation.

The new policy, in effect, will allow interest rates to remain lower for longer, undercutting the dollar by discouraging Forex investment seeking higher yields. A weaker dollar, in turn, supports gold and other commodities by making them less expensive overseas.

Yields on Benchmark 10-year Treasury notes also fell, reducing the opportunity cost for holding gold, which provides no yields of its own.

The other precious metals were mixed for the day but higher for the moth. Silver added 2.9% to finish August with a remarkable 18% gain. Platinum dipped 0.2% for a monthly increase of 2.1%. Palladium added 2.1% today and 6.3% this month.

At the Comex close: December gold gained $3.70 to $1,978.60; December silver climbed 80 cents to $28.59; October platinum dipped $2.10 to $937.90; December palladium picked up $47.80 to $2,279.30 an ounce.