Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close above $1,320 despite a rising dollar as soft data and bargain-hunting boosted demand for safe-haven assets.

US economic growth was downgraded to 2.5% for the fourth quarter of 2017, the Commerce Department reported today, reflecting a build-up in unsold inventories and a sharp rise in the trade deficit. Growth for all of 2017 was 2.3%, up from 1.6% in 2016.

The Chicago PMI dropped to a six-month low in February, with the rising cost of raw materials hampering factory output and demand slipping in the new year. Separately, pending home sales plunged 4.7% to a three-year low in January, pressured by lack of inventory. It was the biggest monthly drop in nearly eight years.

Despite the downbeat data, the dollar rose another 0.3% against major rivals on follow-through from yesterday's hawkish comments from Fed Chair Jerome Powell. Giving his opinion about the economy to Congress yesterday, Powell said he was optimistic about growth and inflation. Traders took his words as a signal that a fourth rate-hike may come this year, boosting the buck and pressuring gold to a 1.1% decline.

The other precious metals also rose modestly, with silver adding 0.2% while platinum picked up less than 0.1% and palladium rose 0.5%.

At the Comex close: April gold gained $1.50 to $1,320.10; May silver added 3 cents to $16.46; April platinum inched up 40 cents to $985; and June palladium climbed $5.10 to $1,034.30 an ounce.