Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close at $1,319 as plunging stocks, a weaker dollar, and lingering worries about a possible government shutdown boosted demand for safe havens.

The Dow tumbled 2.2% and the S&P 500 lost 1.9% as traders grew nervous about resurgent inflation and ballooning deficits. Yields on 10-year Treasury notes pushed up to a four-year high this week, signaling higher mid-term inflation expectations.

The Senate passed a budget agreement yesterday to prevent a government shutdown. But the deal has a bumpy road ahead in the House, making already-skittish investors uneasy about taking risks.

In addition, the Senate's deal increases spending by $300 billion over the next two years, putting the federal deficit on track to exceed 5% of GDP by next year. This is by far the most for an economy at full employment since WWII, according to Bloomberg.

The dollar slipped around 0.2% against major rivals as investors shifted into safe-haven currencies like the yen and Swiss franc.

The other precious metals were mixed, with silver rising 0.6% while platinum and palladium dropped 0.3% and 2.3%, respectively.

At the Comex close: April gold gained $4.40 to $1,319; March silver climbed 10 cents to $16.34; April platinum slipped $3.30 to $978.40; and March palladium dropped $22.35 to $962.20 an ounce.