Questions? Call 1-800-613-9323
BBB Logo
Free Shipping on Orders over $999
Home > Gold > Daily Gold Update

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


8/16/2022: Gold slips ahead of Fed minutes

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.5% to close under $1,790 as bond yields and the dollar edged up on mixed US data ahead of tomorrow's release of the minutes from the Fed's July meeting.

Construction of new US homes fell nearly 10% in July, according to the Commerce Department, to the lowest level in more than 18 months. The dismal data comes one day after the National Association of Home Builders reported that its members see a "housing recession" coming as mortgage rates rise and demand cools.

In a more optimistic report, national industrial output rose 0.6% last month behind a sharp rebound in auto production. Whether it can be sustained is an open question after the Empire State index, considered a weathervane of US manufacturing, plummeted deeply into contraction in August.

The dollar edged up 0.1% to hold at a three-week high on expectations that the Fed will continue to raise interests more aggressively than its peers. China's recovery has all but stalled, prompting the PBOC to cut rates this week. Europe is reeling from slow growth and an energy crisis driven by Russia's retaliation for support of Ukraine.

While soft recent economic data and easing inflation have prompted speculation about a possibly smaller hike in September, the minutes from the last Fed meeting are expected to show the bankers unified in their resolve to fight inflation. Hawkish comments from Fed officials this week have reinforced this view.

Higher rates buoy the dollar by attracting Forex investment seeking higher yield. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

Benchmark 10-year Treasury yields also edged higher on the hawkish rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Falling oil prices helped to curtail gold's recent rise. US benchmark WTI crude plunged 3.5% to the lowest level sine January on demand concerns because of slowing global growth, especially in China. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver slipping 0.9% while platinum and palladium dropped 0.3% and 0.4%, respectively.

At the Comex close: December gold slid $8.40 to $1,789.70; September silver slipped 19 cents to $20.09; October platinum dipped $2.30 to $931.30; and September palladium prices dropped $9.30 to $2,149 an ounce.

  

Metal Ask      Change
Gold $2,200.84           Price Change Up Arrow $0.05
Silver $24.59           Price Change Down Arrow $-0.23
Platinum $904.78           Price Change Down Arrow $-5.58
Palladium $1,033.63           Price Change Up Arrow $5.04
In US Dollars