Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.3% to close under $3,395 after the White House reached a trade deal with Japan and is close to one with the EU, whetting risk appetite and undercutting safe-haven assets. Silver dipped 0.1% to finish at $39.28 an ounce.

The US and Japan agreed to a trade deal that lowers imports on cars and other goods to 15% in exchange for a package of $550 billion in investments and loans to the US. In addition, Japan will purchase 100 Boeing airplanes and increase defense spending with US firms.

On the heels of the Japan deal, the US and the EU are close to completing a deal that puts a broad15% duty on goods imported from Europe, preventing aggressive countermeasures of 30% tariffs on US goods imported into the EU.

Wall Street cheered the news, with the Dow rising 1% while the S&P 500 and Nasdaq added 0.6% and 0.4%, respectively.

Benchmark 10-year Treasury yields rose to just under 4.4% as investors shifted away from bonds and into stocks. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds for safety.

Platinum and palladium fell 1.9% and 0.3%, respectively.

At the New York spot close: gold fell $45.10 to $3,394.10; silver slipped 4 cents to $39.28; platinum dropped $27.80 to $1,437.70; and palladium shed $3.50 to $1,278.50 an ounce.