Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold jumped 0.9% to close at a one-month high above $1,267 as jitters over geopolitics trumped a rising dollar and upbeat GDP data to boost demand for safe havens. The metal finished the week 1.1% higher for its third straight weekly win.

Donald Trump's first international trip as President lent uncertainty to the markets after he condemned German trade practices, chastised NATO leaders, and said North Korea's nuclear ambitions are a "big problem" that he was going to deal with.

Combined with the deepening probe into Russia's connection to the Trump campaign and its new focus on Jared Kushner, the controversial statements on the global stage helped to nudge investors away from risk, pushing the Dow, S&P 500, and Global Dow marginally lower. Treasury prices edged up with gold on flights to safety.

Gold's gains came despite a modest rebound in the dollar after Q1 GDP was revised higher, up to 1.2% from 0.7%. Even at the higher figure, it was the worst growth rate of in a year, following a 2.1% uptick in Q4 2016. A stronger dollar typically weighs on gold and other commodities by making them more expensive overseas.

While the economy appears to have regained some footing in Q2, it remains hampered by soft business spending and retail sales, falling inventory investment, and a widening trade deficit in goods.

The other precious metals also finished higher for the day and week. Silver rose 0.9% for a weekly gain of 3.3%. Platinum climbed 1.5% today and 2.9% this week. Palladium surge 2.9% to end the week 3.3% higher.

At the Comex close: June gold jumped $10.90 to $1,267.20; July silver added 16 cents to $17.35; July platinum climbed $14.30 to $967.40; and September palladium surged $17.76 to $786 an ounce.