Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close above $1,231 as comments from President Trump and rising trade-war worries undermined the dollar, boosting alternative stores of value. The metal still finished the week down 0.8%.

The President complained about the strong dollar and further admonished the Federal Reserve for raising interest rates. China and the EU are manipulators, he tweeted, suppressing their currencies while Fed strengthens the dollar with rate hikes, undermining US competitiveness abroad. The comments came one day after he voiced his displeasure with the Fed's path toward policy normalization.

In response, St. Louis Fed President James Bullard said today that the central bank will not be swayed by the President's criticism. Bullard added that the twin goals of preserving low inflation and high employment through rate policy are required of the Fed by law.

Separately, the President upped the ante on protectionism by declaring his readiness to impose tariffs on all $500 million in Chinese imports. He also threatened the EU with "tremendous retribution" in the form of auto tariffs if he does not get what he wants in his meeting with EU officials next week on auto trade.

The dollar dropped 0.6% against major rivals, its biggest one-day drop in three weeks, as traders digested the latest weak-dollar salvo from the White House. On several occasions in the past 18 months, President Trump and his Treasury Secretary, Steven Mnuchin, have voiced their preference for a weaker dollar to support US trade. A weaker dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were also higher on the day but lower for the week. Silver jumped 1% today but fell 1.7% this week. Platinum surge 2.9% on the day but sipped 0.1% on the week. Palladium rebounded 2.6% but still lost 4.7% on the week.

At the Comex close: August gold gained $7.10 to $1,231.10; September silver rose 15 cents to $15.55; October platinum jumped $23.20 to $829.50; and September palladium rebounded $22.70 to $888.90 an ounce.