Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.6% to close under $1,223, a one-year low, as an upbeat Fed and rising trade jitters boosted the dollar, dulling the appeal of alternative stores of value. It was metal's fifth loss in six sessions.

Trade-war worries took center stage again after the Trump administration threatened to more than double tariffs to 25% against more than $200 billion in Chinese goods. In turn, China warned the US against "blackmailing and pressuring" it, vowing to take countermeasures.

The dollar rallied 0.5% against major rivals as forex investors fled the UK pound and euro for the perceived safety of the US currency. The pound was especially vulnerable because of persistent uncertainty over the economic fallout from Brexit.

The buck had momentum entering today's session after the Federal Reserve upgraded its outlook on the US economy yesterday, changing its description of US growth to "strong" from "solid," as noted in its previous post-meeting statements. A rising dollar typically pressures gold by making it more expensive overseas.

The other precious metals were mixed, with silver dropping 0.4% while platinum and palladium rose 1.4% and 0.4%, respectively.

At the Comex close: December gold fell $7.50 to $1,220.10; September silver lost 7 cents to $15.38; October platinum rose $11 to $828.20; and September palladium picked up $3.40 to $915.50 an ounce.