Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.3% to close under $1,243 as the dollar ticked higher and traders took profits from yesterday's rise to a four-month high above $1,246.

The dollar added 0.1% against major rivals, holding in a tight range, as global currency markets digested the latest shifts in US-China trade relations. A stronger dollar tends to weigh on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Following optimism over last week's announcement of a 90-day pause in new tariffs, trade-war pessimism returned with yesterday's tweet from President Trump threatening "major tariffs against Chinese product" if the forthcoming deal is not to his liking. The change in sentiment eroded the dollar and caused all three major US stock indexes to plummet more than 3% yesterday while pushing gold to a multi-month high.

US equity markets were closed today to mourn the passing of former President George H.W. Bush.

Lending mild support to the dollar, the Fed's Beige Book reported "modest to moderate growth" in 12 Fed districts, with while two slowed down and two others remained nearly flat. Labor markets generally tightened, and headwinds were noted in pricing and trade.

Markets are likely to trade water this week until Friday's nonfarm payrolls report gives a new signal on the health of the job market.

The other precious metals were mostly lower, with silver and platinum sliding 0.4% and 0.3%, respectively, while palladium added 0.4%.

At the Comex close: February delivery gold slipped $4 to $1,242.60; March silver dropped 6 cents to $14.58; January platinum slid $2.20 to $802; and March palladium added $4.20, to $1,184.40.