Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

AustinDollar gains continued Monday with the dollar rising 0.57% to as high as 97.58 on the U.S. dollar index, a 17-month high. Individually the dollar gained 0.86% against the euro and 0.96% against the pound. Gold and silver were pressured modestly lower by the stronger dollar, but not as much as equity markets were.

The euro fell because Italy remains under a deadline to resubmit its draft budget tomorrow, after which an excessive budget deficit procedure could be opened against it and sanctions applied. Italy is currently refusing to shift from its 2019 deficit target of 2.4% of GDP. The EU wants this target lowered. The pound fell after Brexit talks floundered yet again. EU ministers failed to agree on a Brexit meeting later this month to review Great Britain’s draft Brexit proposal, shifting expectations for the next summit negotiation to December. Fears of a hard Brexit were renewed following this delay, pressuring the pound lower.

Stocks dropped sharply in the U.S. as the dollar gained value. A stronger dollar makes U.S. goods for export more expensive, potentially hurting sales abroad for multinational companies. At the market close the DJIA was down 2.3% or 602 points, the NASDAQ was down 2.78% or 206 points, and the S&P 500 was down 1.97% or 54.75 points.

At the Comex close: December gold fell $5.10 to $1,203.50; December silver slumped 13 cents to $14.01; January platinum fell $10.70 to $845.30; and December palladium shed $11.90 to $1,085.60 an ounce.