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Daily Gold Update
Current precious metals news

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Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


September 28: Gold slips as dollar strengthens

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.5% to close under $1,324 as upbeat U.S. data and comments from a prominent Fed official boosted the dollar and dulled demand for alternative stores of value.

U.S. consumer confidence rose to a nine-year high in September, according to the Conference Board, on optimism about the labor market and a favorable outlook for economic expansion. In a separate report, orders for durable goods were flat in August after a strong rise in July, beating expectations but still signaling struggles in manufacturing.

San Francisco Federal Reserve Bank President John Williams said today the economy is ready for higher interest rates". With two more policy meetings this year, the Fed is unlikely to raise rates before December. CME Fed watch places the odds of a November hike at just 10% while December is 56%.

The dollar strengthened behind the consumer confidence and Fed jawboning, pressuring gold and other commodities denominated in it for international trade.

The other precious metals were mixed, with silver and platinum both dropping 0.2% while palladium jumped 1.9%.

At the Comex close: December gold fell $6.70 to $1,323.70; December silver slid 4 cents to $19.12; January platinum lost $2.30 to $1,027; and December gained $13.35 to $714.40 an ounce.




September 27: Gold falls on post-debate risk appetite

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1% to close above $1,330 as returning risk appetite after the first presidential debate reduced demand for safe-haven assets.

Investors were apparently anxious going into last night's debate between Donald Trump and Hillary Clinton, shifting from risk assets likes stocks into safe havens like gold during yesterday's market action. Many traders view the prospect of a Trump presidency with some trepidation if only because his policy positions are largely unknown and unpredictable, and markets crave predictability.

U.S. stocks rebounded today, with the Dow adding 0.7% and Nasdaq nearly 0.9%, as Trump was widely seen as doing little to advance his chances with uncommitted voters, according to a CNN poll after the debate.

Gold was also pressured by tumbling oil prices after West Texas Crude fell 2.8% following Iran's rejection of a Saudi proposal to cut output during an OPEC meeting in Algiers. Gold often trades in sympathy with oil as a hedge against energy-inflation.

The other precious metals also fell, with silver dropping 2.2% while platinum and palladium fell 1.7% and 0.7%, respectively.

At the Comex close: December gold fell $13.70 to $1,330.40; December dropped 43 cents to $19.17; January platinum lost $17.40 to $1,029.30; and December palladium slid $4.90 to $701.05 an ounce.




September 26: Gold gains on safe-haven inflows

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.2% to close above $1,344 on safe-haven inflows as equities and the dollar slipped ahead of the U.S. presidential debate.

Stocked stumbled worldwide, with the Dow dropping 0.8% and the Global Dow 1%, as traders hedged their positions before tonight's first debate between Hillary Clinton and Donald Trump. With polls narrowing, any new signs of momentum shifting toward Trump, whose policies remain largely unknown and unpredictable, are expected to increase market volatility, according to a research note from Goldman Sachs.

The dollar soften 0.2% against major rivals as traders digested last week's decision by the Fed to postpone raising interest rates yet again. Most analysts think a December hike is already priced into the market, so the buck's upside is weak in coming months. Data showing new home sales plunged 7.6% in August also pressured the currency.

Oil jumped 4%, wiping out Friday's losses, as OPEC meets with other major producers in Algeria to find ways to support prices. Gold often trades in sympathy with oil as a hedge against energy-inflation.

The other precious metals finished lower, with silver dropping 1.1% while platinum and palladium fell 1.3% and 1.5%, respectively.

At the Comex close: December gold gained $2.40 to $1,344.10; December silver dropped 21 cents to $19.60; January platinum fell $14.20 to $1,046.70; and December palladium shed lost $10.25 to $696.15 an ounce.




September 23: Gold dips, scores 2.4% weekly win

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.2% to close under $1,342 as traders took profits from a four-session winning streak. The metal finished the week 2.4% higher, boosted by the Fed's decision to hold interest rates steady at the September meeting of the FOMC, which concluded on Wednesday.

A recent spate of weak data, including August job growth, manufacturing, and wholesale inflation, undercut the case for higher rates. Although Fed Chair Janet Yellen signaled that a rate hike is likely by the end of the year, she cautioned that the committee needs to see continued progress in economic growth, payroll expansion, and inflation before committing to tighter monetary policies

Despite Yellen's hawkish forward guidance, the case for a December hike is not all that strong, with traders placing the odds at a little better than 50/50, according CME FewWatch.

The Markit Flash PMI for September, released today, shows manufacturing expanded at the slowest pace in three months and barely more than contraction. The New York Fed cut its growth forecast for U.S. GDP to 2.26% in Q3 and 1.22% in Q4.

The dollar rebounded 0.2% on bargain-hunting after several days of losses, pressuring gold and other commodities denominated in it for international trade. Oil plunged around 4% on reports that disagreements between Iran and Saudi Arabia may stop an expected pact among major oil producers to reduce over-production and boost prices. Gold often trades in sympathy with oil as a hedge against energy-inflation.

The other precious metals were mixed on the day but strongly higher for the week. Silver dropped 1.4% but still gained 5% this week. Platinum slid 0.5% but held a weekly gain of 4.5%. Outlier palladium gained 0.9% today and around 5% this week.

At the Comex close: December gold dipped $3 to $1,341.70; December silver dropped 29 cents to $19.81; January platinum slid $5.60 to $1,060.90; and December palladium gained $5.95 to $706.40 an ounce.




September 22: Gold adds another 1% after Fed

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold added another 1% to close at a two-week high near $1,345 as the dollar slipped further in the wake of yesterday's decision by the Fed to keep interest rates unchanged. The metal has now risen 2.7% over four straight winning sessions.

At the conclusion of its two-day meeting on monetary policy, the FOMC voted against raising rates because it needs "further evidence of continued progress" in growth, employment, and inflation. The Bank of Japan also held its rates, undercutting forex bets that monetary policy in the world's largest and third-largest economies would diverge further.

The dollar slid for a second day on the Fed decision. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive in foreign markets.

Stocks also rallied for a second day, with the Dow and Global Dow adding another 0.6% and 1.2%, respectively, on the prospect of continued low U.S. rates.

The other precious metals also gained, with silver climbing 1.7% to close above $20 for the first time in two weeks. Platinum and plaldium added 1.4% and 2.4%, respectively.

At the Comex close: December gold gained $13.30 to $1,344.70; December silver rose 33 cents to $20.10; October platinum climbed $14.90 to $1,062.80; and December palladium picked up $16.55 to $700.45 an ounce.




September 21: Gold jumps higher on BOJ, Fed

Source: Bill Musgrave, American Gold Exchange

Austin -- Gaining for the third straight day, gold jumped 1% to close above $1,331 after the Bank of Japan shifted its policy away from quantitate easing, causing the dollar to plunge against the yen. The metal then extended its gains, climbing as high as $1,339 in electronic trade, after the Fed held interest rates unchanged.

Hoping to stimulate its stubbornly stagnant economy, the BOJ abruptly changed direction by adopting new targets long-term interest rates. While it will continue to buy large amounts of government bonds, a money-printing program known as quantitative easing, it will not expand the asset purchases. Rather, the government will seek to generate inflation by holding long-term bond rates near zero for an indefinite period. The yen immediately gained 1% versus the dollar after the announcement.

After the close of the regular Comex session, the Fed announced its decision to hold interest rates unchanged, as expected, but kept the door open to a rate hike in December. Saying risks to the economy now "appear roughly balanced," the committee wants more evidence that employment and inflation are making progress before tightening monetary policy. It was an unusually contested decision with three members dissenting.

The dollar weakened after the Fed decision, supporting gold and other commodities denominated in it for international trade. Equities rallied on the prospect of extended monetary accommodation, with Dow and Global Dow adding 0.5% and 1.1%, respectively.

The other precious metals also finished higher, with silver surging 2.6% while platinum and palladium gained 1.7% and 0.1%, respectively.

At the Comex close: December gold jumped $13.20 to $1,331.40; December silver surged 49 cents to $19.77; October platinum gained $17 to to $1,047.90; and December palladium picked up 40 cents to $683.90 an ounce.




September 20: Gold edges higher as FOMC meets

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold consolidated yesterday's 0.6% rise and edged up slightly, closing above $1,318, as traders largely treaded water ahead of tomorrow's conclusion of the Fed's two-day meeting on monetary policy.

The metal was mildly supported by more disappointing data, with U.S. housing starts plunging 6% in August after two solid months of gains. Bad weather was a contributing factor, and homebuilder sentiment remains strong, but the report joins a stream of reports that signal a loss of momentum in the economy. Retail sales, industrial production, and payrolls have all fallen short of expectations in the past month, prompting the Atlanta Fed to cut is growth forecast again to 2.9% in Q3 today.

Against this background of slowing, the Fed is all but certain to leave interest rates alone this month. CME FedWatch pegs the odds at just 18%, based on Fed funds futures trading.

However, the central bank is also expected to cut to its long-range forecast on interest rates to 2.75%, according to Reuters, down from 3.75% in June 2015 and 4.25% four years ago. This means fewer and smaller rate hikes in the future, which is positive for gold.

The other precious metals were mixed, with silver and palladium slipping 0.1% and 0.4%, while platinum gained 0.7%.

At the Comex close: December gold added 40 cents, to $1,318.20; December silver fell 1 cent, to $19.28; October platinum gained $7.20 to $1,030.90; and December dipped $2.75 to $683.50 an ounce.




September 19: Gold gains head of Fed, BOJ meetings

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.6% to close near $1,318 as the dollar retreated ahead of meetings by the Fed and Bank of Japan this week.

The dollar dropped around 0.3% against major rivals, especially the yen, as traders positioned themselves for the growing likelihood that the BOJ will refrain from adding more quantitative easing. With growth and inflation remaining stubbornly low despite multiple rounds of easing, currency markets had widely anticipated more easing from the BOJ at its next meeting.

Officials are now signaling a less aggressive tack emphasizing negative interest rates instead of additional easing. The news boosted the yen against the dollar as QE typically weakens a currency against its rivals. Also pressuring the buck, the Fed is widely expected to keep interest rates unchanged when the it meets this week.

Oil traded higher, gaining around 0.5%, after Venezuela said OPEC and other producers are likely to sign a deal to stabilize prices. Gold trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals also gained, with silver jumping 2.3% while platinum and palladium added 0.6% and 2.1%, respectively.

At the Comex close: December gold gained $7.60 to $1,317.80; December silver jumped 43 cents to $19.29; October picked up $6.10 to $1,023.70; and December palladium rose $13.85 to $686.25 an ounce.




September 16: Gold drops as rising CPI rallies dollar

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dropped 0.6% to close at an eight-week low near $1,310 as a rise in consumer inflation boosted the dollar, curbing demand for alternative stores of value. The metal ended the week down 1.8%.

The Consumer Price Index rose 0.2% in August, more than forecast, behind rapidly escalating rents and healthcare costs. Excluding food and energy, which fell during the month, the so-called core CPI gained a little more at 0.3%.

Given yesterday's PPI report, which showed flat wholesale inflation in August, the near-term trend for consumer inflation remains murky. The Fed's preferred gauge, the so-called core Personal Consumption Expenditures index, is projected at 1.7% year-over-year, still well-under the 2% target.

The dollar jumped nearly 0.8% on the CPI report, pressuring gold and most commodities, as traders speculated that the Fed may be more confident about raising interest rates later this year. While September is almost certainly off the table, the odds of a hike December rose from 50% to 55%, according to CME FedWatch. The buck was also boosted by expectations that the Bank of Japan will ease further, weakening the yen. Both the Fed and BOJ meet next week.

The other precious metals were mixed for the day but lower for the week. Silver fell 0.9% for a weekly loss of 2.6%. Platinum dropped 1.6% on the day and 4.7% on the week. Palladium gained 2.4% but still ended the week 1% lower.

At the Comex close: December gold fell $7.80 to $1,310.20; December silver dropped fell by 18 cents to $18.86; October platinum lost $16.20 to $1,017.60; and December palladium gained $15.80 to $672.40 an ounce.




September 15: Gold falls as rate-view sparks risk-rally

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 0.6% to close at $1,318 on rising risk appetite after a slew of negative U.S. economic data all but killed the chances of a September rate hike when the Fed meets next week.

Retail sales declined 0.3% in August, the Commerce Department reported today, signaling softer domestic demand for goods and causing the Atlanta Fed to cut its GDP forecast for Q3 to 3%. Industrial output also weakened, dropping 0.4% in August and 1.1% over the past 12 months. Manufacturing has been hammered by falling oil prices, the strong dollar, and tepid demand for U.S. exports.

Wholesale inflation was unchanged in August after food prices fell by the most in three years. The sub-index for services edged up 0.1% while goods declined by 0.4%. The PPI has now been flat for the past 12 months, bedeviling the Fed's efforts to kindle inflation through near-zero interest rates.

The Dow and S&P 500 both gained 1%, pulling monies from safe-havens like gold and Treasury bonds, as traders speculated that the latest barrage of weak data means no rate hike when the FOMC meets next week. CME Fed Watch cut the odds for September from 15% to 12%, while December dropped to 50/50.

The other precious metals were mostly lower, with silver and platinum sliding 0.1% and 0.7% while palladium edged up slightly.

At the Comex close: December gold dropped $8.10 to $1,318; December silver dipped nearly 3 cents, to $19.04; October platinum fell $7.10 to $1,033.80; and December palladium inched up 10 cents to $656.60 an ounce.




September 14: Gold rises, dollar falls on import prices

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.2% to close above $1,326 after falling import and export prices lowered inflation expectations, eroding the dollar and boosting demand for alternative assets.

U.S. import prices fell for the first time in six months, dropping 0.2% in August, while prices on exported goods fell 0.8%, further calling into question the progress of consumer inflation toward the Fed's target rate of 2%. Several Fed officials, including Fed Governors Lael Brainard and Daniel Tarullo, have stated in recent days that evidence of rising inflation is needed before they will advocate tightening monetary policy.

The dollar fell more than 0.3%, boosting gold and other dollar-pegged commodities, on speculation that the data all but dashes the prospect, already dim, for a rate hike from the Fed next week. Treasure yields also fell as prices rallied on flights to safety.

With the odds of a September rate hike from the Fed hovering at just 15%, next week's meeting of the Bank of Japan is likely to influence the direction of the dollar, and therefore gold, more than the FOMC meeting will. If the BOJ withholds addition monetary accommodation, the yen is likely to rally against the dollar, boosting gold, whereas inaction by the Fed is largely priced into the market already.

The other precious metals also finished higher, with silver and platinum adding 0.5% while palladium picked up 0.1%

At the Comex close: December gold gained $2.40 to $1,326.10; December silver added 9 cents, to $19.07; October platinum rose $4.90 to $1,040.90; and December palladium edged up 40 cents to $656.50 an ounce.




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