Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close near $1,219 as rising political tensions at home and abroad sparked safe-haven demand.

President Trump's abrupt firing of FBI Director James Comey yesterday, ostensibly over his handling of the Hillary Clinton email investigation, shocked the markets and raised the specter of deepening gridlock in Washington. Critics immediately accused Trump of trying to block further scrutiny of his alleged ties to Russia just a few days after Comey requested additional funding to deepen the inquiry.

Risk appetite softened after the firing, as traders worried that the controversy may delay Trump's tax-reform program. In addition, North Korea's ambassador to the UK said his nation is planning another nuclear-weapons test, furthering tensions with the U.S.

The dollar slipped on the rising geopolitical uncertainty, supporting gold and other commodities priced in it for international trade. U.S. Treasurys rose alongside gold on flights to safety.

The other precious metals also finished higher, with silver rising 0.9% while platinum and palladium climbed 1% and 0.7%, respectively.

At the Comex close: June gold gained $2.80 to $1,218.90; July silver rose 14 cents to $16.21; July platinum climbed $9 to $909.90; and June palladium added $5.56, to $799.35 an ounce.