Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to close under $1,242, the lowest level since last December, as the dollar rallied on political uncertainty in the Eurozone and Mexico.

The future of Germany's Angela Merkel is in doubt after allies in her coalition government rejected immigration reforms forged last week by leaders of the European Union. Without a comprehensive plan to bar asylum-seekers from entering Germany through other EU countries, Merkel's tenure as Chancellor is precarious and the EU itself could be in jeopardy.

Leftist outsider Andres Lopez Obrador was elected President of Mexico yesterday, marking a hard-left shift in the government and throwing relations with the US into uncertainty. Mexico's peso plunged 1% against the dollar after the election on fears that trade tension with the Trump administration will be heightened.

The dollar gained 0.4%, boosted by the political uncertainty in Mexico and Germany. The buck has risen around 2.7% this year while the euro has dropped 3%. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

The other metals were also sharply lower, with silver losing 2.2% and palladium shedding 1.7% while platinum tumbled 5.2% to its lowest level in 10 years.

At the Comex close: August gold fell $12.80 to $1,241.70; September silver lost 36 cents to $15.84; October platinum plunged $43.80 to $813.40; and September palladium surrendered $16.50 to $934.40 an ounce.