Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close above $1,303 as the dollar treaded water and traders prepared for this week's FOMC meeting and the summit between the US and North Korea.

After disrupting last week's G7 meeting by accusing the EU and Canada of unfair trade practices and calling for the reinstatement of Russia, President Trump left early and went to Singapore for an unprecedented summit with the dictator of North Korea, Kim Jong Un. The President's stated goal is the denuclearization of the Korean peninsula.

The dollar traded sideways, pressured by a rising euro but supported by a softer Canadian loonie and Japanese yen. The loonie fell after President Trump's hardline indictment of Canadian trade practices complicated the future of NAFTA. The yen, often seen as a safe-haven currency, slipped on hopes that the US-North Korea meeting may defuse tensions in Asia brought about by Kim Jong Un's ambitions for nuclear weapons.

Gold's gains were kept in check by expectations that the Fed will raise interest rates by a quarter-point when it meets this week. However, traders also speculate that the central bank will signal its intention to maintain a measured, gradual approach to further rate hikes. Higher interest rates pressure gold by boosting the dollar.

The other precious metals were also higher, with silver rising 1.3% while platinum and palladium added 0.1% and 1.1%, respectively.

At the Comex close: August gold added 50 cents to $1,303.20; July silver jumped 21 cents to $16.95; July platinum edged up 70 cents to $906.40; and September palladium climbed $10.80 to $1,016.50 an ounce.