Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close above $1,315, posting its third straight winning session as ongoing trade and growth worries boosted its safe-haven allure ahead of this week's Fed meeting. It was the metal's highest finish since mid-June.

Consumer confidence tumbled to an 18-month low this month, notching its third monthly decline as the 35-day partial shutdown of the US government caused Americans to grow pessimistic about the prospects for continued economic growth.

Uncertainty over Brexit and the US-China trade conflict also weighed on investor sentiment. Britain's parliament rejected a proposed amendment to delay Brexit beyond the current deadline at the end of March, increasing the possibility that Britain will crash out the EU with no trade agreements. China and the US meet this week to attempt a rapprochement in their ongoing trade war.

The Fed began its two-day meeting on monetary policy. While no change is expected in interest rates, analysts expect the central bankers to reinforce the dovish tone struck in December, given softer global growth and continued trade problems.

Regular rate hikes over the past two years have been a major support for the dollar, weighing on gold in turn by making it more expensive overseas. The slowing or ending of additional hikes would be bullish for the metal.

Gold was also supported by a rally in oil, with Brent crude rising more than 2% after the Treasury imposed sanctions on Venezuela's state-owned oil company. The move is seen as an effort to pressure the Maduro administration in favor of Juan Guaido, the opposition leader who has assumed presidential powers. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 0.5% while platinum and palladium rose 0.2% and 1.1%, respectively.

At the Comex close: April gold gained $5.90 to $1,315.20; March silver rose 7 cents to $15.84; April platinum picked up $1.30 to $815.80; and March palladium climbed $14.30 to $1,303.60 an ounce.