Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 1.1% to close under $1,278 rising equities and bond yields boosted risk appetite and dulled demand for safe havens. It was the metal's lowest finish since late December.

With investors feeling upbeat because of optimism over progress in US-China trade negotiations, US and global equities gathered strength, with the Dow adding 0.3% and the Global Dow 0.4%. Better-than-expected earnings reports also fueled momentum.

US Treasury Secretary Steven Mnuchin commented over the weekend that few hurdles remain in a pact that would end the trade war that has slowed the world's two largest economies since last summer.

The dollar picked up ground against major rivals, with the ICE Dollar Index adding nearly 0.2%. Treasury prices fell and yields rose on the improved outlook. A stronger dollar pressures gold and other commodities priced in it for global trade by making them more expensive overseas.

Exerting additional downward pressure on the gold price, Venezuela sold $400 million in gold reserves to generate cash amidst international sanctions against the Maduro government.

The other precious metals were also lower, with silver sliding 0.4% while platinum and palladium lost 0.5% and 1.2%, respectively.

At the Comex close: June gold dropped $14.10 to $1,277.20; May silver slid 6 cents to $14.92; July platinum lost $10.30 to $884.20; and June palladium shed $6.30 to $1,328.40 an ounce.