Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.5% to close under $1,314 as stocks and the dollar gathered strength, dulling appetite for alternative assets.

US equity indexes added to record highs, with the Dow rising 0.5% while the S&P 500, notching its six-straight winning session, picked up another 0.3%. Traders speculate that rising growth and lower corporate taxes will further boost share prices this year.

The dollar added 0.3% against major rivals but slipped against the yen after the bank of Japan announced that it will reduce its purchases of long-dated government bonds. Stronger dollar weighs on gold and other commodities by making them more expansive for users of other currencies.

Minneapolis Fed President Neel Kashkari said today that low inflation and weak wage growth suggest that interest rates should remain low for longer than the Fed's three projected hikes for this year would allow. Yesterday, Atlanta Fed President Raphael Bostic made similar points, advocating just two rate hikes in 2018. Both statements were effectively pushback against comments by hawkish Fed members Loretta Mester of Cleveland and John Williams of San Francisco, who made speeches in recent days calling for three or four hikes this year.

The other precious metals were mostly lower, with silver and platinum dropping 0.8% and 0.4%, respectively, while outlier palladium picked up 0.2%.

At the Comex close: February gold fell $6.70 to 1,313.70; March silver for delivery lost 13 cents to $17.01; April platinum slid $ 4.10 to 972.30; and March palladium picked up $2.25 to $1,098.15 an ounce.