Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Extending last week's 2.4% rally, gold added 0.3% to close at $1,234 on momentum from the Fed's dovish rate hike and Britain's movement toward Brexit.

The dollar traded nearly flat, edging up 0.1% against a basket of major rivals while losing ground to the euro after UK Prime Minister Theresa May said she will begin the process of leaving the European Union on March 29. The pound plunged on the report and while the euro edged up as foreign exchange traders sought safety.

Last week gold rallied after the Fed raised interest rates by a quarter-point, as expected, but also included some surprisingly dovish language and forecasts. The dollar promptly dropped to a six-week low, supporting gold and other commodities denominated in it for international trade by making them less expensive in other currencies.

Gold also received safe-haven support after Treasury Secretary Steven Munchin succeeded in striking language against protectionism from the policy statement issued by the Group of 20 industrialized and developing nations at its meeting over the weekend. Reversing a decade-old policy, the shift was seen, potentially, as the first step toward a trade war that may boost inflation by undercutting cheap imports.

The other precious metals were also giver, with silver adding 0.1% while platinum and palladium picked up 1% and 0.8%, respectively.

At the Comex close: April gold gained $3.80 to $1,234; May silver for delivery inched up 0.1% to $17.44; April platinum climbed $9.40 to $972.40; and June palladium rose $5.15 to $781.65 an ounce.