Daily Gold Update

Source:Matt Warden, American Gold Exchange

AustinGold closed down 0.5% to end the day at $1,523.60 but ended the week up more than 1%. Although gold spiked to over $1,546 per ounce on Tuesday, a more than 6-year high, it spent much of the week in a $1,500 to $1,520 trading range, consolidating month-to-date gains of more than 8%. Growing expectations of continued aggressive stimulus from all the major central banks gave global financial markets a welcomed respite after a tumultuous week, temporarily easing demand for haven assets like gold.

Focus will turn to the Federal Reserve's annual Jackson Hole symposium next week for guidance on future U.S. monetary policy. According to the CME Group's FedWatch, there is now a more than 30% chance of 50 basis-point cut in the Effective Federal Funds rate at their September FOMC meeting.

A top official at the European Central Bank stated today they will announce a "substantial and significant" stimulus package in September, responding to weakening eurozone growth with additional bond purchases as well as a 0.1% cut to its key interest rate, currently standing at 0.4%.

China's state planner also announced today that it would be rolling out a plan to boost disposable income this year and in 2020 in order to spur economic growth by encouraging consumer demand but did not provide further details.

Global central banks are not increasing stimulus alone; according to The New York Times, more than 30 central banks around the world have cut interest rates this year, including Australia, China, South Korea, Russia, Japan, Turkey, India, Brazil, Thailand, and New Zealand, among others, with expectations of more aggressive easing ahead. Coordinated global easing is normally reserved for recessionary periods, yet the global growth forecast for economic expansion is 3.2% in 2019 and 3.5% in 2020, according to the IMFs latest projections.

The other precious metals were mixed for the day, with silver down 0.5%, commensurate with gold, and platinum and palladium 1.1% and 0.2% higher, respectively.

At the Comex close: December gold ended the day $7.60 lower at $1,523.60 per ounce; September silver dropped 9 cents to $17.12 per ounce; October platinum rallied $9.50 to $851.50 per ounce; September palladium rose $2.70 to $1,441.30 per ounce.