Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close above $1,279 as the dollar weakened after House Republican's unveiled their new tax plan and expectations grew that Jerome Powell would likely become the next Chair of the Federal Reserve.

Details of the widely-anticipated tax reforms from the House emerged today. Called the Tax Cuts and Jobs Act, the plan keeps the top rate on individuals at $39.5% but raises the compensation threshold to $1 million. It also caps mortgage deductions at $500,000 and eliminates the estate tax.

The dollar slipped after the plan was announced as traders speculated that it has little chance of becoming law. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Also pressuring the dollar and supporting gold was the expectation that former Fed Governor Jerome Powell would be appointed Fed Chair by President Trump. Considered more dovish than other finalists, and perhaps even more dovish than Fed Chair Janet Yellen, Powell's nomination would likely maintain a slow pace for rate hikes next year.

The other precious metals were lowered, with silver dipping 0.1% while platinum and palladium dropped 0.5% and 0.4%, respectively.

At the Comex close: December gold gained $2 to $1,279.30; December silver dipped 2 cents to $17.16; January platinum lost $4.80 to $931.90; and December palladium dropped $5.50 to $994.60 an ounce.