Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 0.3% to close under $1,286 as a downbeat economic outlook in Europe weakened the euro and boosted the dollar, undercutting demand for alternative stores of value.

European Central Bank chair Mario Draghi said today that risks to Eurozone growth have increased to the downside because of a variety of factors, including growing protectionism, debt problems in emerging economies, and rising volatility in financial markets.

Meanwhile, Germany cut its GDP growth forecast for 2019 from 1.9% to 1%, citing slowing global economies and confusion about Brexit. The Eurozone flash PMI for January showed manufacturing almost stalled at a reading of 50.5, where below 50 means contraction.

The euro slid on the depressed outlook, helping to boost the ICE Dollar Index by nearly 0.5%. Upbeat US employment data also supported the buck after weekly jobless claims reached the lowest level in almost 50 years. A rising dollar tends to weigh on gold and other commodities by making them more expensive in other currencies.

The other precious metals were mixed, with silver and palladium falling 0.5% and 2.1%, respectively, while platinum rose 1/1%.

At the Comex close: April gold dropped $4.30 to 1,285.90; March silver shed 8 cents to $15.30; April platinum gained $8.60 to $805; and March palladium fell $27.50 to $1,280.70 an ounce.