Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold finished nearly flat, dipping 40 cents to close under $1,291, as the easing of trade-war tensions with China spurred a rally in equities and undercut demand alternative assets.

Treasury Secretary Steven Mnuchin said today the US will "put the trade war on hold" and postpone tariffs on Chinese goods while the world's two largest economies negotiate an agreement to reduce the US trade deficit with China. The Dow jumped around 300 points, or 1.2%, on optimism that a damaging trade war could be averted.

The dollar rose on the reduced trade tension, adding more than 0.1% against major rivals to reach a six-month high. A rising dollar typically weighs on gold and other commodities by making them more expensive overseas.

Gold prices were underpinned by going concerns that Italy may be heading for a Greek-style sovereign debt crisis. The coalition government cobbled together by the populist 5 Star party and the anti-immigration League is proposing a fiscal program of spending and tax cuts that could destabilize its finances.

Rising oil prices also supported the yellow metal, with crude rising as much as 1.8% on speculation that the US could impose sanctions on Venezuela, a major producer, for suspect elections. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were higher, with silver rising 0.4% while platinum and palladium gained 1.5% and 3.2%, respectively.

At the Comex close: June gold dipped 40 cents to $1,290.90; July silver added 6 cents, to $16.52; July platinum gained $13.30 to $899.80; and June palladium jumped $30.20 to $990.40 an ounce.