Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.7% to close near $2,684 as concerns about the policies of the incoming Trump administration stoked safe-haven demand despite a stronger dollar. It was bullion’s third straight day of gains and highest finish in four weeks. Silver surged 1.1% to end at $30.79 an ounce.

President-elect Trump said he may invoke emergency powers to provide legal justification for unilateral tariffs on virtually all trading partners. The statement was a direct reversal of reports earlier in the week that he may selectively target imports that pertain to economic and national security.

The proposed tariffs are widely expected to raise prices for US consumers and potentially trigger trade wars with allies and adversaries alike. Gold is often sought as a hedge against economic uncertainty and loss of purchasing power.

The World Gold Council reported yesterday that bullion-backed gold ETFs saw their first increase in investment in four years.

Benchmark 10-year Treasury yields retreated from an eight-month high as investors shifted toward the perceived safety of US government debt. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

Gold’s gains again came despite a stronger dollar, which rose 0.1% against major rivals as forex traders anticipate shallower rate-cuts because of the inflationary potential of Trump policies. A rising buck typically weighs on gold and other commodities by making them pricier in other currencies.

Platinum added less than 0.1% while palladium picked up 1.4%.

At the New York spot close: gold gained $19.30 to $2,683.80; silver surged 34 cents to $30.79; platinum added 50 cents, to $970.30; and palladium advanced $12.95 to $934.45 an ounce.