Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinGold and silver gave up a bit of Friday’s gains but remained range-bound in modest New York trading today. Both metals traded in narrow ranges, in calm trading with little new economic or geopolitical news to move them higher or lower.

The US dollar continued its modes uptrend today with the dollar gaining another 37 basis points or .0.36% to 103.26 on the US dollar index, to its highest level since early August. Yields in the US 10-year T-bill were flat on the day. Gold is inversely correlated to the dollar. When the dollar gains value against other major currencies it makes gold more expensive in those currencies, dampening demand outside of the US where gold demand is substantially higher than in the US.

On Saturday, Chinese Finance Minister Lan Foan again underwhelmed both Chinese and global markets eager to learn just how far China would go to stimulate its depressed economy. While long on intent to stimulate, Foan was again short on details regarding just how much stimulus China might deploy to boost its ailing property markets, a primary source of wealth for Chinese citizens and investors.

Chinese stocks, which have surged sharply following the news a month ago of new Chinese stimulus programs, have been losing upside momentum in recent trading over the lack of new stimulus details. Saturday’s announcement did little to change that stalling momentum.

The US announced it would be sending a new missile defense system to Israel and 100 US troops to help manage it. The deployment of the Terminal High Altitude Area Defense missile system, or THAAD, is an indication of how sharp the Israeli response to Iran’s ICBM attack of two weeks ago may be. Israel and the US seem be anticipating that Iran will have no choice but to respond in kind to any retaliation salvo Israel fires at Iran.

At the New York spot close: gold eased down $9.80 to $2,647.80; silver shed 28 cents to $31.24; platinum gained $9.80 to $994.80; and palladium fell $37.90 to $1031.90 an ounce.