Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close near $1,279 as bargain-hunters swept in after Friday's mysterious 1% drop. Safe-haven inflows also propelled the metal after global equities pulled back on uncertainty over US tax cuts and British politics.

On Friday, gold fell 1% in a matter of minutes after few trades totaling four million ounces triggered a technical sell-off. The metal stilled gained 0.4% for the week as the dollar spiked lower on growing conflict in Congress over the shape of tax reform. The Senate and House have produced widely divergent bills that may prove difficult to reconcile. The CBO reported last week that the House plan will increase the federal deficit by $1.7 trillion over 10 years, exceeding the Senate's ruled limit of $1.5 trillion.

Also supporting gold were news that British Prime Minister Theresa May is facing calls to resign after 40 MPs are reportedly signing a letter of no confidence. Trouble with Brexit negotiations and various scandals have wracked her Tory government, and European Union representatives are now threatening to block trade talks unless May settles pressing Brexit issues. The pound spiked lower on the turmoil, pushing investors into safe havens.

Global equities receded by around 0.2% as investors cut risk. Treasury prices ticked higher alongside gold as investors shifted toward safety with uncertainty over tax reform pressured yields. The dollar was nearly flat, stabilizing after last week's sharp fall.

The other precious metals were mostly higher, with silver and platinum adding 1% and 0.4%, respectively, while palladium slipped 0.3%.

At the Comex close: December gold gained $4.70 to $1,278.90; December silver rose 18 cents to $17.05; January platinum added $3.50, to $935.60; and December palladium slid $3.40 to $989.70 an ounce.