Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold jumped 1.5% to close at a five-week high above $3,401 as the dollar and Treasury yields fell further on trade uncertainty and concerns about Fed independence. Silver surged 2.3% to finish at $39.10 an ounce.

Treasury Secretary Scott Bessent said today that "the entire Federal Reserve institution" needs to be "examined," adding to concerns that the Trump administration is planning a major shakeup that may bring monetary policy under the authority of the President.

The statement came after Trump called Fed Chair Jerome Powell a "numbskull" last week and floated his termination, an act of dubious legality, to several Republican lawmakers. Worried that global faith in US sovereign debt and the dollar would be undermined, the markets went into a panic until Trump retracted the idea,

The dollar fell 0.7% against major rivals on the rekindled threats against the Fed, lifting gold and other commodities by making them cheaper overseas.

Benchmark 10-year Treasury yields also rolled back on flights to safety, lifting gold by decreasing the opportunity cost for holding it instead of bonds.

Against this backdrop, the August 1 deadline is approaching for trading partners to cut deals with the US or be subject to large tariffs, deepening trade wars. The EU is reportedly exploring counter measures.

Platinum rose 2.7% while palladium fell 1.7%.

At the New York spot close: gold jumped $48.90 to $3,401.90; silver surged 88 cents to $39.10; platinum picked up $39.20 to $1,477.70; and palladium shed $22.10 to $1,269.80 an ounce.