Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged 0.1% higher to close near $1,281 despite a slightly stronger dollar as U.S. stocks faded on uncertainty over tax cuts, boosting appetite for alternative assets.

Interrupting a string of record closes, the Dow dipped 0.2% while the S&P 500 and Nasdaq lost 0.4% and 0.7%, respectively, as traders began to question the prospects for tax reform. Last week, stocks climbed to new highs after the Senate agreed to a budget blueprint, eventually allowing President Trump's proposed tax cuts to be passed with a simple majority vote.

Subsequent reports that 401(k) contributions may capped as part of the deal have weighed on investor sentiment, however, since many American's purchase stocks through their retirement plans. The Trump plan is projected to add $1.5 trillion to the federal deficit over 10 years. The cut in pre-tax 401(k) contributions to as low as $2,400 per year would help to make up that shortfall by reaping more in current taxes.

Treasury prices edged up alongside gold as investors tacked toward safe havens.

The dollar gained 0.1% on major rivals, supported by a strong surge against the yen after Japanese Prime Minister Shinzo Abe won by a landslide in a snap election over the weekend. The vote was viewed as an endorsement of the monetary easing program known as "Abenomics," which effectively devalues the yen.

The other precious metals were mixed, with silver traded flat while inched down less than 0.1% and palladium fell 2%.

At the Comex close: December gold added 40 cents, $1.280.90; December delivery was flat at $17.08; January platinum picked up 40 cents to $927.20; and December palladium lost $19.90 to $949.95 an ounce.