Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinWith US markets closed for the Martin Luther King, Jr. holiday, April gold futures edged up 0.2% to just under $1,561 despite a stronger dollar as rising oil, lower growth forecasts from the IMF, and political uncertainties surrounding the impeachment trial of President Trump lifted demand for alternative assets.

Brent crude jumped 1% to $65.50 per barrel after Libya's largest pipeline was shut down by forces loyal to Khalifa Haftar, stopping production of 1.2 million barrels per day. Separately, striking security guards closed an oil field in Iraq. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The IMF cut its global growth forecasts for 2020 and 2021, citing ongoing trade tensions and sharper-than-expected slowdowns in Indian and emerging markets. The global economy expanded 2.9% in 2019, the slowest since the financial crisis in 2009. The IMF now foresees 3.3% growth this year and 3.4% in 2021, down from 3.4% and 3.6%, respectively.

The impeachment trial of Donald Trump will begin tomorrow in the sharply divided Senate, with both sides still jockeying over whether witnesses will be called. With the President's acquittal all but assured by the Republican majority, the only real question is the electoral fallout from the historic proceedings.

The other precious metals were mixed in electronic trade, with April platinum falling $3.40 to $1,023.60 while March palladium gained $24 and March silver was virtually flat at $18.07 an ounce.