Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close near $1,229 as the results of the US midterm elections pressured the dollar and Treasury yields, boosting demand for alternative stores of value.

Democrats retook control of the House while Republicans strengthened control of the Senate, creating a divided Congress that is likely to result in legislative gridlock for at least the next two years.

The dollar fell 0.2% against major rivals as traders speculated that President Trump's pro-business agenda of further tax cuts and additional governmental spending now will not be put into law. Spending and tax reform helped to fuel GDP growth and the dollar during the first part of the year.

Treasury prices rose on the election results, pressuring yields, with analysts expecting divided government to slow the growing US budget deficit, which swelled to $779 billion for fiscal 2018, the most since 2012. A smaller deficit creates less government debt, which lowers the likelihood of default and reduces the amount of compensation, or yield, investors can demand for their loans.

The other precious metals also rose, with silver adding 0.5% while platinum and palladium climbed 0.8% and 2.3%, respectively.

At the Comex close: December gold gained $2.40 to $1,228.70; December silver picked up 7 cents to $14.57; January platinum rose $7.30 to $878.80; and December palladium climbed $25.40 to $1,120.70 an ounce.