Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,282 as the dollar and equities retreated after Michael Flynn, a Trump insider, reportedly agreed to testify about contacts between the Trump campaign and Russia during the election. The news rattled markets and boosted demand for safe-haven assets. Gold closed the week 0.7% lower.

According to reports, Flynn plead guilty to lying to the FBI and struck a deal to provide full cooperation with Special Counsel Robert Mueller's investigation into Russian tampering with last year's presidential election. Speaking in court, Trump's former national security advisor said campaign contacts with Russia were instigated by a "very senior member" of Trump's team.

US equities promptly plunged on the news, with the Dow dropping 300 points in a matter of minutes before bouncing off session lows. Traders fear that testimony leading back to the President could derail his pro-growth agenda and perhaps delay the passage of tax reform.

The dollar also slipped on the political turmoil, losing 0.3% against major rivals but holding virtually flat for the week. A weaker dollar typically boosts gold and other commodities priced in it for international trade by making them less expensive overseas.

The other precious metals were mixed on the day and week. Silver fell 0.5% for a weekly loss of 4%. Platinum slipped 0.2% on the day and 0.5% on the week. Palladium rallied 1.3% for a weekly gain of 2.4%.

At the Comex close: February gold gained $5.60 to $1,282.30; March silver dropped 8 cents to $16.39; January platinum slid $1.90 to $940.60; and March palladium added$19.15, to $1,016.25 an ounce.