Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold eased 0.1% to close under $3,352 as equities, bond yields, and the dollar edged higher on rumblings of trade deals with South Korea and the EU. Silver slid 0.5% to finish at $38.46 an ounce.

President Trump turned up the trade temperature over the weekend, threatening new tariffs of 30% on Mexico and the EU after similar warnings against Japan, South Korea, and other nations. Today, South Korea and the EU replied that they are framing out deals with the US in hopes of circumventing destructive trade wars.

All three major US stock indexes swung from small losses to small gains following the remarks, with the Dow and S&P 500 picking up 0.2% while the Nasdaq rose 0.3%.

Benchmark 10-year Treasury yields rose 17 basis points to 4.43% on the shift toward risk appetite, pressuring gold by increasing the opportunity costs for holding it instead of bonds for safety.

Tracking higher with yields, the dollar added 0.3% against major rivals, undercutting gold and other commodities by making the pricier overseas.

President Trump increased the pressure on the Fed to cut interest rates, saying on Sunday that it would be "a great thing" in Fed Chair Jerome Powell resigned. Traders will look toward the CPI and PPI releases this week for further clues on the direction of interest rates.

Platinum fell 3.6% and palladium lost 1.7%.

At the New York spot close: gold dipped $4.50 to $3,351.50; silver shed 21 cents to $38.46: platinum dropped $52.30 to $1,399.70; and palladium slid $21.30 to $1,202 an ounce.