Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 1.5% to close near $3,229 on safe-haven inflows after Moody's downgraded US creditworthiness, pressuring the dollar. Silver rose 0.5% to finish at $32.32 an ounce.

Citing unsustainable US deficits and interest costs, Moody's rating service downgraded the US government's credit rating one notch, from AAA to AA1. Moody's was the last major credit agency to do so.

While largely symbolic, the move highlights the growing difficulty of financing the nearly $37 trillion national debt, just as newly proposed Trump tax cuts will add some $4 trillion more to the deficit.

Long-term bond yields jumped after the downgrade as investors demanded higher returns to take on the added risk. Foreign demand for Treasurys has been dropping since the November election on growing concerns over US trade and fiscal policies, including unfunded tax cuts.

The dollar fell 0.7%, boosting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Platinum and palladium both gained 1.3%.

At the New York spot close: gold climbed $46.90 to $3,228.90; silver added 16 cents, to $32.32; platinum po icked up $13.25 to $1,001.80; and palladium advanced $12.80 to $976.10 an ounce.