Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.4% to close near $3,389 as growing concerns about the independence of the Fed undercut Treasury yields and the dollar while fueling demand for safe havens. Silver slipped 0.3% to finish at $38.58 an ounce.

President Trump fired Fed Governor Lisa Cook overnight for alleged improprieties in mortgage applications before she joined the Fed. Of uncertain legality, the move is widely viewed as an attempt to influence monetary policy by installing a loyalist on the FOMC. Cook said she will fight the dismissal in court.

Trump has been aggressively pressuring the Fed to cut interest rates by 300 basis points to levels consistent with a recession�despite repeatedly claiming that the economy is booming.

Benchmark 10-year Treasury yields fell on flights to safety as investors worry that compromised Fed independence would cause global investors to lose confidence in US financial assets. Lower yields lift gold by reducing the opportunity cost for holding it instead on bonds.

Tracking lower with yields, the dollar fell 0.3% against major rivals, supporting gold and other commodities by making them less expensive in other currencies.

Platinum and palladium rose 0.1% and 0.2%, respectively.

At the New York spot close: gold gained $14.80 to $3,388.60; silver slipped a dime to $38.58; platinum picked up $1.30 to $1,345.15; and palladium added $2.10, to $1,104.75 an ounce.