Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.1% to close at a one-month low under $1,315 as the dollar rallied on the Senate's budget agreement, cutting demand for alternative stores of value.

The Senate reached an agreement on a two-year budget deal that will prevent a government shutdown on Friday. Spending caps are raised by around $300 billion, with $80 more going to the military and $20 billion for infrastructure spending. The deal still must pass the House.

The dollar rose 0.7% as traders breathed a sigh of relief that the government will probably remain open. The strong likelihood of a march rate hike from the Fed also supported the buck, as CME FedWatch places he odds at above 80%. Higher rates attract forex investment seeking higher yield, bidding up the dollar and pressuring gold by making it more expensive overseas.

The other precious metals were also lower, with silver sliding 2.1% while platinum and palladium dropped 1.3% and 1.8%, respectively.

At the Comex close: April gold fell $14.90 to $1,314.60; March silver dropped 34 cents to $16.24; April platinum lost $12.60 to $981.70; and March palladium slid $17.95 to $984.55 an ounce.