Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,303 as uncertainty about trade talks with China and another Brexit vote drove equities lower, boosting demand for safe havens.

The US and China will reopen talks this week on diffusing the tariff war that has hampered both economies since last summer. Sticking points appear to be the huge trade imbalance and contentions that China systematically violates intellectual property rights for technology products.

British PM Theresa May submits a revised Brexit deal to Parliament for a vote tomorrow. After a resounding defeat earlier this month on a similar deal, few analysts anticipate the new one will pass.

US equities plunged on the trade and Brexit worries, with the Dow losing around 1% and the tech-heavy Nasdaq nearly 1.2% as investors shed risk. Treasury notes rallied alongside gold, pressuring yields, on flights to safety. The dollar slipped 0.1% against major rivals.

Gold's gains came despite sharply lower oil prices. Brent crude lost 3.3% for its biggest one-day drop in four weeks after an increase in US drilling signaled a likely supply overstock. Brent has risen 12% January after OPEC announced production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The CBO reported today that the US government will add another $12 trillion to the national debt over the next decade unless revenues and expenditures come more into alignment. By 2029, the debt will become 93% of the economy, up from a current 78%.

The other precious metals were mixed, with silver rising 0.4% while platinum and palladium fell 0.5% and 2.3%, respectively.

AT the Comex close: February gold gained $5 to $1,303.10; March silver rose 7 cents to $15.77; April platinum slipped $3.80 to $814.50; and March palladium dropped $30.50 to $1,289.30 an ounce.