Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close at $1,297.50 as rising geopolitical tension between the US and North Korea pressured the dollar and rekindled demand for safe-haven assets. The metal still lost 2% this week, largely in response to the Fed's signal that another rate increase is likely this year.

Following President Trump's threat to "totally destroy" North Korea earlier this week, Kim Jong Un responded in kind, saying he might test a hydrogen bomb in the Pacific Ocean and make Trump "pay dearly" for his remarks.

The renewed saber-rattling affected financial markets, knocking the dollar as much as 0.4% as traders shifted into the Swiss franc and Japanese yen, considered haven currencies. Treasury prices rose alongside gold while US equities slipped marginally lower.

The flight to safety was not enough to overcome this week's losses from hawkish statements from the Federal Reserve following its two-day meeting on monetary policy. Despite persistently low inflation, the Fed indicated that another rate hike is likely by its December meeting. At the same time, it will slowly begin to unwind its $4.5 trillion balance sheet. Both moves support the dollar, pressuring gold in turn by making it more expensive overseas.

The other precious metals were mixed for the day and lower for the week. Silver slid 0.2% today and 4% this week. Platinum dropped 0.8% on the day and 4.1% on the week. Palladium added 0.9% today but slipped 0.2% this week.

At the Comex close: December gold gained $2.70 $1,297.50; December silver slid 4 cents to $16.98; October platinum dropped $7.80 to $932.10; and December palladium picked up $8.30 to $919.85 an ounce.