Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to finish above $1,943, close to a one-week high, as renewed Brexit and China tensions fueled a selloff in stocks, stoking demand for safe havens.

British PM Boris Johnson threatened to override portions of the divorce agreement between Britain and the EU, throwing Brexit talks again into disarray. Johnson said he was ramping up preparations to exit with no trade agreement in place, which would destabilize the pound and euro.

Adding to global tension, President Trump vowed yesterday to "decouple" from China economically by scaling back trade in his second term if re-elected. He floated "massive" new tariffs and penalties for companies that continue doing business with Beijing.

The hardline rhetoric on both sides of the Atlantic rattled equity markets, with the Dow and S&P 500 fell 2.3% and 2.8%, respectively, while the tech-heavy Nasdaq tumbled 4.1% on concerns that sanctions against China may extend to chipmaker SMIC, a key part of many supply chains.

Treasury yields fell sharply as investors shifted out if risk assets and toward safe havens.

The dollar rose 0.8%, also on safe-haven inflows, as the UK pound plunged on the Brexit turmoil. A rising dollar typically weighs on gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly higher, with silver and platinum rising 1% and 1.4%, respectively, while palladium slipped 1.6%.

At the Comex close: December gold gained $8.90 to $1,943.20; December silver rose 28 cents to $26.99; October platinum added $12.10, to $910.30; and December palladium dropped $37.40 to $2,305.80 an ounce.