Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold climbed 0.1% to close at a one-week high of $1,303 as a rising euro pressured the dollar, spurring demand for alternative stores of value.

The dollar declined 0.3% and the euro rallied as traders speculated that the European Central Bank will start to unwind monetary easing when it meets next week. Quantitative easing, the bond-buying program that stimulated the Eurozone in the aftermath of the 2008 financial crisis, is targeted to end in coming months.

At the same time, the ECB is expected to signal its intention to raise interest rates ahead of schedule, closing the euro's rate differential with the dollar. Both moves will support a stronger euro and pressure the dollar, in turn boosting gold and other commodities priced in dollars for global trade by making them less expensive overseas.

Also pressuring the dollar, the Group of 7 conference convenes today amid acrimony between the US and its major economic allies over Trump administration tariffs on steel and aluminum. A trade war, should it occur, would be a short-term drag on GDP and undermine the recent dollar rally.

Gold also received safe-haven bids after Brazilian stocks plunged 5% on strikes and other labor unrest. US Treasury notes also rallied on flights to quality, driving yields sharply lower.

The precious metals were mixed, with silver adding 0.7% while platinum and palladium fell 0.8% and 0.6%, respectively.

At the Comex close: August gold gained $1.60 to $1,303; July silver rose 13 cents to $16.82; July platinum dropped $7.30 to $900.30; and September palladium lost $5.60 to $1,009.60 an ounce.