AGE Daily Gold Update

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

9/17/2019: Gold edges up before Fed

Source: Bill Musgrave, American Gold Exchange

Austin — Extending Monday's 0.8% rise, gold added another 0.1% to close above $1,513 despite sharply lower oil as traders prepare for tomorrow's statement on monetary policy from the Federal Reserve.

West Texas Intermediate crude fell 6% to under $60 per barrel after Saudi Arabia said it has already restored 50% of its damaged capacity and expects to regain all lost production by the end of the month. Oil prices jumped 15% yesterday, the most in 20 years, after two Saudi facilities were attacked over the weekend.

While gold typically tracks oil as a hedge against energy-related inflation, it rose slightly on residual safe-haven demand and expectations that the Fed will cut interest rates by a quarter-point tomorrow at the conclusion of its two-day meeting. Falling rates support gold and other commodities by making them less expensive overseas.

Also supporting gold, the dollar slid 0.3% against a basket of rivals as market tensions subside over the Saudi oil attack. President Trump said today he is in no hurry to retaliate against Iran, the suspected source.

The other precious metals were also higher, with silver rising 0.6% while platinum and palladium picked up 0.5% and 0.4%, respectively.

At the Comex close: December gold added $1.90, to $1,513.40; December silver gained 11 cents to $18.14; October platinum climbed $5 to $944.20; and December palladium picked up $5.50 to $1,597.70.