Daily Gold Update

Source:Matt Warden, American Gold Exchange

AustinGold, silver and the US dollar continued to consolidate this week's big move lower. After hitting a new 2018 low yesterday, gold ended the day up 0.1% to close at $1,184.50. Silver added 8 cents to close at $14.79. The US dollar ended the week by falling 0.5%. Gold and silver prices remain closely linked to the dollar. A strong dollar pressures gold and silver by making them more expensive in other currencies.

The dollar slipped lower amid news China has agreed to a US invitation to resume trade talks later this month, as well as reports the two countries are drawing up plans to resolve their trade dispute by November ahead of meetings planned between President Trump and Chinese leader Xi Jinping. US dollar demand has been buoyed by increased uncertainty and loss of risk-appetite stemming from global trade tensions. Signs of a resumption in trade negotiations has reduced dollar demand.

The drop in the dollar was curtailed, however, by threats of additional sanctions on Turkey following Treasury Secretary Steven Mnuchin's remarks demanding the release of an American pastor. A report out of FitchRatings that questioned Turkey's response to recent lira depreciation, stating their current policy is unlikely to sustainably stabilize their currency or economy, also helped temper dollar loses. Demand for insurance against the Turkish financial crisis spreading contagion through the eurozone banking system boosts demand the dollar.

US stock indexes also rose amid reports trade-war tension between the US and China may be easing. The Dow increased by nearly 0.5% and the Nasdaq 0.2%. The S&P 500 rose by 0.4% extending its rally to within just 4 trading-days of becoming the longest rally in S&P 500 history.

Platinum and palladium extended their recovery from Wednesday's selloff with platinum up $4.20 to $788.70 and palladium up $14.20 to $889.00. Platinum and palladium have been shaken by threats of tariffs on US automobile imports. Platinum and palladium are critical components in automobile catalytic converters.