Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rebounded strongly, jumping 3.5% to close above $3,336, as rate-cut hopes and economic uncertainty spurred safe-haven inflows following last Friday's correction. Silver surged 2.4% to finish at $51.12 an ounce.

After reaching a new intraday record above $4,378 on Friday, gold pulled back under $4,242 by the session's close when President Trump said his additional 100% tariffs on China were "not sustainable."

But as today's aggressive rebound indicates, concerns about trade wars with China are not the only driver behind bullion's epic rally. After nearly three weeks, the US government shutdown appears no close to ending. Key economic data has been delayed, leaving investors struggling to make sense of markets that seem both fragile and overbought.

Adding to the uncertainty, the Fed will meet next week to set monetary policy in something of a data vacuum, without the latest information on inflation and the health of the labor market.

Against this backdrop, Fed funds futures traders put the odds of a quarter-point rate cut at 99%, with another coming in December. Lower rates lift gold by lowering yields and weakening the dollar, thereby reducing the opportunity costs for holding it and making it cheaper in other currencies.

Platinum and palladium rose 2% and 1.8%, respectively.

At the New York spot close: gold gained $146.50 to $4,336.40; silver climbed $1.26 to $51.12; platinum picked up $32.60 to $1,634.90; and palladium advance $28.60 to $1,509.55 an ounce.