Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped another 0.5% to close at a two-week high above $1,327 as President Trump announced tariffs on goods from China, sparking new fears of a trade war and spurring safe-haven demand.

The US will impose up to $60 billion in tariffs against China, the Trump Administration announced today, in a measure intended to halt the misappropriation of intellectual property, mainly in tech, from US companies.

Wall Street plunged on the announcement, with the Dow losing 2.4% while the S&P 500 and Nasdaq dropped 2%, as investors feared a trade war that could undermine GDP and ratchet up inflation. The dollar was little-changed, edging up 0.1%.

Gold's gains extended yesterday's 0.7% rally after the Federal Reserve signaled that only three quarter-point rate increases are on pace for 2018, allaying concerns of a more aggressive schedule of tightening. A trade war, should it occur, would likely be a further impediment to faster rates hikes.

The other precious metals, being more closely tied to industry and therefore trade, finished lower. Silver and platinum slid 0.2% while palladium dropped 0.5%.

At the Comex close: April gold gained $5.90 to $1,327.40; May silver slipped 2 cents to $16.39; April platinum dipped $1.50 to $949.10; and June palladium dropped $4.35 to $981.80 an ounce.