Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 30 cents to close at $1,218 despite a rally in global equities as China's recent move to strengthen the yuan pressured the dollar, buoying demand for alternative store of value.

Unhappy with recent weakness in the yuan, China's central bank reinstated a risk reserve ratio of 20% on banks trading in foreign exchange markets for their clients. The reserve ratio had been dropped in 2015 to reduce the yuan's strength by making it easier to sell. With the currency dropping 5% against the dollar this year, China is seeking to deter yuan sales and stem its slide.

The dollar fell 0.2% against major rivals as the yuan and euro both rallied. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Gold's gains were limited by a global equity rally, boosted by a rise in corporate earnings and a rebound in Chinese stocks. The Dow and Global Dow rose 0.5% and 0.8%, respectively, while the S&P 500 was up 0.3%.

The other precious metals were mostly higher, with silver and platinum adding 0.5% while palladium dipped 0.1%.

At the Comex close: December gold gained 30 cents to $1,218; September silver rose 7 cents to $15.36; October platinum rose $4.10 to $830.40 an ounce, while September palladium dipped 80 cents to $902.90 an ounce.