Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's rally, gold added 0.6% to close above $1,265 on rising expectations that the Republican tax bill will raise inflation next year, boosting demand for long-term stores of value. The metal rose 0.7% last week for its first weekly win in a month.

Tax reform is likely to pass both chambers of Congress this week and land on President Trump's desk for his signature. The landmark legislation, which sharply cuts personal and corporate taxes, is expected to fuel growth and higher prices next year.

Stocks rallied on tax euphoria, capping gold's gains, with the Dow and S&P 500 adding 0.6% each. The reform would slash corporate taxes from 35% to 21%, which would likely increase profits, dividends, and share prices.

The dollar fell 0.4% against major rivals, boosting gold and other commodities priced in it for global trade.

The other precious metals were mostly higher, with silver and platinum climbing 0.7% and 2.5%, respectively, while palladium slipped 0.2%.

At the Comex close: February gold added $7.90, to $1,265.40; March silver rose 12 cents to $16.18; January platinum jumped $26.10 to $915.30; and March palladium slid $2.05 to $1,013.35 an ounce.