Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 1.3% to close near $1,465, the highest level in more than six years, after China escalated the trade war with the US by devaluing its currency. Stocks and the dollar sold off as worried investors shifted into safe havens. The metal has risen 4% in the past six session and 15% since early May.

The trade war entered a new and potentially more damaging phase after China cut the value of the yuan to under 7 per dollar, the lowest level since the financial crisis of 2008. The move came in retaliation for President Trump's decision to impose new 10% tariffs on $300 billion in Chinese goods, announced late last week.

Analysts worry that the yuan's devaluation, which will make Chinese exports more competitively priced, could spark a currency war if other nations follow suit to protect their economies from the global downturn.

US equities fell by the most since last December investors shed risk, driving the Dow and S&P 500 nearly 3% lower while the tech-heavy Nasdaq dropped 3.4%. Treasury prices surged on flights to safety, knocking yields on benchmark 10-year notes down 11 basis points.

Adding to risk-off sentiment, the ISM services index slowed in July to the weakest reading in nearly three years.

The dollar fell 0.5% against major rival as traders shifted into safe-haven currencies like the yen and Swiss franc. A falling dollar supports gold and other commodities priced in it for international trade by making them less expensive overseas.

The other precious metals were mostly higher, with silver and palladium adding 0.8% each while palladium fell 1%.

At the Comex close: December gold jumped $19 to $1,464.60; September silver rose 12 cents to $16.34; October platinum climbed $7.50 to $860.50; and September palladium fell $14.30 to $1,418.50 an ounce.