Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.2% to close above $1,201 as headway toward a Brexit agreement rallied the UK pound and weakened the dollar, spurring demand for alternative stores of value.

Britain and the European Union have reported moved closer to an agreement over the terms of Brexit after Germany said it is ready to accept a less detailed plan for the UK's future economic and financial ties to get the deal done.

The dollar fell 0.3% against major rivals led by the British pound, which surged more than 1% against the buck on the potential Brexit breakthrough. A falling dollar supports gold and other commodities by making them less expensive overseas.

Downbeat trade data also pressured the dollar after the Commerce Department reported the US trade deficit surged 10% in July to a five -month high. An expanding trade deficit weighs on GDP.

St. Louis Fed President James Bullard warned today that the flattening yield curve is signaling that Fed policy may already be too tight. Speaking at an investor conference in New York, Bullard said stubbornly low long-term interest rates and market-based expectations for inflation suggest the yield curve is likely to invert "later this year or sometime next year." Occurring when long-term interest rates fall below short-term, an inverted yield curve has been a reliable predictor of recession.

The other precious metals were mostly higher, with silver and platinum rising 0.3% and 0.8%, respectively, while palladium dropped 0.7%.

At the Comex close: December gold gained $2.20 to $1,201.30; December silver added 4 cents, to $14.22; October platinum rose $6.10 to $784.30; and December palladium dropped $6.30 to $961.20 an ounce.