Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.2% to close at a two-week high above $1,304 after the US pulled out of an upcoming summit with North Korea and called for new tariffs on autos, spurring demand for safe-haven assets.

Displeased by antagonistic rhetoric and North Korea's resistance to dismantling its nuclear weapons program, President Trump cancelled his meeting with Kim Jong-un, scheduled for next month. The President alluded to the "massive and powerful" nuclear capabilities of the US, saying "the military is ready."

Separately, the Trump administration is considering new tariffs of up to 25% on imported autos and auto-parts, triggering renewed fears of a global trade war.

The dollar fell 0.4% in response, while safe-haven currencies like the Swiss franc and Japanese yen jumped. US Treasurys also rallied on flights to safety, driving yields on benchmark 10-year notes back under 3%.

Yields and the dollar were already under pressure after yesterday's dovish minutes from the latest Fed meeting signaled little inclination to accelerate the pace of rate hikes this year. CME Fedwatch lowered the odds of four hikes to 41%, down from 51% last week. Fewer rate hikes weigh on the dollar by suppressing demand from forex investors seeking higher yield, in turn supporting gold and other commodities priced in dollars by making them less expensive overseas.

The other precious metals were mostly higher, with silver and platinum jumping 1.7% and 1.3%, respectively, while palladium slipped 0.2%.

At the Comex close: June gold surged $14.80 to $1,304.40; July silver jumped 29 cents to $16.69; July platinum climbed $11.80 to $912.60; and September palladium dipped $5 to $966.10 an ounce.