Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.9% to close at a fresh 6-year high above $1,423 as renewed trade-war jitters pressured stocks and the dollar, boosting demand for safe-haven assets.

President Trump added pressure on trade talks by renewing his threat to increase tariffs on another $325 billion in Chinese goods. The White House believes slower growth in China, where GDP expanded at 6.2% in Q2, will pressure Beijing to make a deal. Real GDP growth in the US was 1.7% in Q2, according to the update released today by the Atlanta Fed.

The Fed's Beige Book for June and early July showed the economy expanding moderately across most Fed regions. However, widespread concern was reported that the ongoing trade war with China will further erode US growth.

US and global equities slid as trade worries and lower corporate earnings undercut risk appetite. Yields on benchmark US Treasurys fell as investors shifted toward safety. The dollar slipped 0.2% against major rivals as expectations build for a Fed rate cut later this month. A falling dollar tends to support gold and other commodities by making them less expensive overseas.

Chicago Fed President Charles Evans laid out the case for a half-point cut, saying it would deliver a needed jolt to the economy. Separately, Dallas Fed President Robert Kaplan, who has been resistant to a rate cut, said today that a quarter-point reduction is needed to offset the global risks that are driving down bond yields.

The other precious metals were also higher, with silver surging 1.9% while platinum and palladium rose 0.2% and 1.8%, respectively.

At the Comex close: August gold jumped $12.10 to $1,423.30; September silver surged 29 cents to $15.97; October platinum added 20 cents, to $847.10; September palladium climbed $26.90 to $1,543.20 an ounce.