Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 0.5% to close at $1,205 as trade-war worries with China and higher inflation boosted the dollar, dulling demand for alternative stores of value. It was the metal's third losing session in a row.

President Trump is reportedly planning to move ahead with $200 billion in additional tariffs on imports from China next week, escalating trade tensions with the world's second-largest national economy. So far, the US has imposed duties of up to 25% on $50 billion in Chinese goods, and China has retaliated in kind.

The dollar gained 0.2% against major rivals on trade-war worries, pressuring gold and other commodities by making them more expensive overseas. A rout in the Argentina peso also pushed forex traders toward the dollar after an emergency rate hike to 60% failed to stop cash from leaving the country. The Argentine currency crisis, coming on the heals of a similar crash in the Turkish lira, has hammered emerging markets in recent weeks.

The dollar was also supported by rising inflation, which reinforced the view that the Fed will continue with gradual rate hikes. The PCE index, the Fed's preferred gauge, rose to an annualized 2.3% in July. The core-PCE, stripping out volatile food and energy prices, hit 2% for the second time since 2012.

The Dow and Global Dow shed around 0.6% each as rising trade-war worries pushed investors away from risk.

The other precious metals were mostly lower, with silver and platinum sliding 1.5% and 0.6%, respectively, while outlier palladium added 0.7%.

At the Comex close: December gold lost $6.50 to $1,205; December silver dropped 22 cents to $14.59; October platinum $4.80 to $791.80; and December palladium picked up added $6.40 to $960.70 an ounce.