Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close near $1,289, a new five-month high, as geopolitical jitters and dollar-negative comments from Donald Trump boosted demand for alternative stores of value. The metal closed the holiday-shortened week with a rise of 2.5%.

President Trump said late yesterday that "the dollar is getting too strong" and he would prefer the Fed keep interest rates low. The statement, which came in a Wall Street Journal interview, reiterated comments made by Trump and Treasury Secretary Steven Mnuchin in February calling into question the so-called strong dollar policy that has dominated U.S. trade for two decades.

The dollar came under immediate pressure after the interview was released, supporting gold and other commodities denominated in it for international trade by making them less expensive overseas. The buck rebounded later in today's session, however, in part because of improving consumer sentiment data in March.

Gold received safe-haven bids from uncertainty surrounding the upcoming presidential election in France. Both Jean-Luc Melenchon of the far-left and Marine Le Pen of the far-right have been rising in the polls. Both are calling for Frexit, or a French exit from the EU, which would deliver a possibly mortal blow to the euro.

Falling wholesale inflation also supported gold by decreasing pressure on the Fed to raise interest rates. Producer Prices fell 0.1% in March for the first decline since last August.

The other precious metals were mostly higher, with silver adding 1.2% for a weekly rise of 2%. Platinum added 1% on the day and 1.3% on the week. Palladium slid 0.1% today and 0.9% this week.

At the Comex close: June gold gained $10.40 to $1,288.50; May silver rose 21 cents to $18.51; July platinum added $9.30, to $975.30; and June palladium dropped 40 cents to $795.90 an ounce.