Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close at $1,314 as a likely deal on border security weakened the dollar, boosting demand for alternative stores of value.

Congress reached a tentative agreement that will avoid another government shutdown if approved by President Trump. While full details have not been released, the deal apparently finances 55 miles of new fencing on the US-Mexico border while raising spending on port screening tech and humanitarian aid, giving both Republicans and Democrats some of what they sought.

Equities jumped on the hard-won compromise, with the Dow and Nasdaq gaining around 1.5% each on optimism that President Trump will sign it into law and prevent another drag on the economy. The 35-day shutdown earlier this year shaved around $11 billion off GDP, according to the Congressional Budget Office.

The dollar broke its eight-session winning streak, dropping 0.4% against major rivals, as traders shifted back into riskier currencies like the euro and pound. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Oil rose 1.3% to a one-week high over $53 per barrel on reports that OPEC sharply cut production in January, easing the oversupply that has been pressuring prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with platinum and palladium rising 0.4% and 1.4%, respectively, while silver was unchanged.

At the Comex close: April gold gained $2.10 to $1,314; March silver was flat at $15.69; April platinum added $3, to $789.60; and March palladium climbed $18.60 to $1,375.40 an ounce.