Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold edged down 0.2% to close over $1,264 as the dollar crept higher on President Trump's tax proposal, damping demand for alternative stores of value.

Trump and Treasury Secretary Steven Mnuchin unveiled their plans to slash corporate taxes from 35% to 15% while granting a tax holiday on corporate profits repatriated from overseas. The proposal would also reduce the number of personal income tax brackets from seven to three, and stop allowing people to deduct state and local taxes from reportable income, among other provisions.

The Trump administration claims the plan will unleash growth by allowing corporations to generate more profit, which they will then plow into business investment. Critics call it a return to supply-side economic principles that will add billions�perhaps trillions�to the federal deficit.

The dollar added 0.2% against major rivals, though lost ground after the Trump tax announcement. A stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive overseas.

The other precious metals were mixed, with silver and platinum sliding 1.3% and 0.8%, respectively, while palladium gained 1.1%.

At the Comex close: June gold edged $3 lower to $1,264.20; July silver lost 23 cents to $17.43; July platinum slid $7.65 to $948.10; and June palladium gained $8.76 to $805.15 an ounce.