Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rallied 2.4% to close above $3,311 on safe-haven inflows after President Trump's latest tariff salvo prompted renewed concerns about global trade wars ahead of the Fed's meeting on interest rates. Silver rose 0.7% to finish at $32.21 an ounce.

Over the weekend, Trump announced a new tariff of 100% on films "made in foreign lands." While its details and enforceability are foggy, this new trade edict caused investors to brace for additional turmoil, shifting back toward gold and silver after last week's corrections lower.

Meanwhile, the Fed begins a policy meeting this week amidst uncertainty over how these aggressive new trade policies will affect the US economy. While no changes in interest rates are expected, the markets will be attuned to changes in the accompanying policy statement for clues about future direction.

The ISM said today that the services sector edged slightly higher in April, while the prices paid by businesses for materials and services accelerated to the highest level in more than two years.

The dollar slipped 0.2%, supporting gold and other commodities by making them less expensive overseas.

Platinum and palladium slipped 0.3% and 0.9%, respectively.

At the New York spot close: gold surged $79.40 to $3,311.30; silver rose 22 cents to $32.21; platinum slipped $2.75 to $960.15; and palladium lost $8.85 to $945.60 an ounce.