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


9/19/2019: Gold slides on Fed rate view

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slid 0.6% to close just above $1,506 after Wednesday's slightly hawkish signals from the Federal Reserve clouded the outlook for future monetary easing. After falling under $1,500 late yesterday in electronic trade, the metal recovered somewhat in today's session as the dollar weakened, rekindling interest in safe havens.

The Fed delivered a quarter-point rate cut yesterday, as expected, to offset the economic headwinds of ongoing trade conflicts and slowing global growth. But the committee was deeply divided on the need for additional rate cuts, with only 7 of 17 members projecting another one this year.

Traders were disappointed in the less-dovish stance, causing the stocks and gold to slide while the dollar climbed against major rivals. Deeper rate cuts would undermine the buck, boosting gold by making it less expensive overseas.

Today, the dollar lost ground against major rivals, especially the yen and Swiss franc, as fears about slowing growth reasserted themselves. The OECD downgraded its forecast for global growth to 2.9% this year and 3% in 2020, the lowest rates since the financial crisis, because of escalating trade tensions.

Gold's rebound was capped by some upbeat US housing data. New house construction jumped 12% in August, the most in 10 years, as mortgage rates dropped. Sales of existing homes rose 1.3%.

The other precious metals were mixed, with silver slipping 0.2% while platinum and palladium rose 0.8% and 1.9%, respectively.

At the Comex close: December gold $9.60 to $1,506.20; December silver dipped 4 cents to $17.88; October platinum added $7.80 to $942.40; December palladium rose $30.40 to $1,612.60 an ounce.

  

Metal Ask      Change
Gold $2,238.49           Price Change Up Arrow $37.70
Silver $25.14           Price Change Up Arrow $0.32
Platinum $919.18           Price Change Up Arrow $8.82
Palladium $1,051.24           Price Change Up Arrow $22.65
In US Dollars