Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rallied 0.7% to close at a new record high of $2,940 on safe-haven inflows as Treasury yields and the dollar retreated on economic and geopolitical uncertainty. Bullion has risen 12% so far this year to a series of new all-time highs, driven by uncertainty over the disruptive policies of the Trump administration. Silver as flat at $32.99 an ounce.

President Trump announced that he will enact new tariffs on pharmaceuticals, autos, lumber, and semiconductors "over the next month or sooner." These will come atop the 10% tariffs on all Chinese imports, 25% tariffs on steel and aluminum, and reciprocal tariffs on all current trading partners.

Tariffs of 25% on all imports from Mexico and Canada imports, intended to force them into stopping immigrants and fentanyl at the borders, were postponed for 30 days.

The possibility of trade wars and higher inflation caused by these aggressive policies are fueling demand for gold as a currency of last resort. In addition, the radical restructuring of the federal government is creating uncertainty within markets.

Gold exports from Switzerland to the US rose to the highest level in 13 years, according to Swiss customs data.

Benchmark 10-year Treasury yields fell under 4.5% as investors sought safety in government bonds. Falling yields help gold by reducing the opportunity cost for holding it instead of bonds.

Tracking with yields, the dollar lost 0.7% against major rivals, boosting gold by making it cheaper overseas.

Platinum picked up 0.7% while palladium slipped 0.3%.

At the New York spot close: gold gained $20.60 to $2,940; silver was flat at $32.99; platinum added $6.50, to $980; and palladium dipped $2.80 to $984.50 an ounce.