Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Extending last week's rise, gold gained another 0.9% to close near $1,216 on safe-haven demand as the dollar, stocks, and Treasury yields all retreated on concerns about Donald Trump's policies.

The dollar fell 0.4% to a six-week low after Donald Trump's inaugural address on Friday gave little indication of how he plans to enact campaign promises to boost economic growth to 4%. Traders were also concerned that his "America First" policy may result in trade wars and protectionism that could undermine the fragile global recovery and diminish U.S. growth by undercutting exports.

The S&P 500 fell 0.3%, bouncing off intraday lows that put it on track for its worst day of the year as investors preferred safety to risk. Treasury yields fell to two-week low. Hedge funds and other speculators increased their bullish bets on gold, raising long positions on Comex contracts for the second week.

The other precious metals were mostly higher, with silver and platinum adding 0.9% and 0.4%, respectively. Palladium fell 2.1% after rising 5% on Friday behind forecasts for strong global auto sales in 2017.

At the Comex close: February gold gained $10.70 to $1,215.60; March silver picked up 15 cents to $17.19; April platinum added $3.90, to $979.90 March palladium slid $16.90 to $771.50 an ounce.