Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close at $1,281 as growing worries about the US-China trade conflict pressured stock markets, supporting appetite for safe-haven assets.

The Dow lost 0.9% and the Global Dow 0.8% after China's state media suggested that the country will use the sale of rare-earth metals as a weapon in its trade war with the US. Important for the production of a wide array of technology products including cell phones and batteries, rare-earth metals are mined in greater quantities by China than all other nations combined.

Global equity markets have fallen sharply in May as the rekindled trade war has pressured corporate profits and damaged fragile global growth. All three major US index are down 6% for the month.

The dollar edged 0.2% higher against major rivals as foreign exchange investors fled the pound and euro for the relative safety of the yen and buck. A rising dollar presents headwinds to gold and other commodities by making them more expensive in other currencies.

Global bonds continued to rally on flights to safety, pushing down yields. The spread between the 10-year Treasury note and 3-month Treasury notes moved further into negative territory, falling to a 12-year low. An inverted yield curve is often a precursor to recession.

The other precious metals were mostly higher, with silver and palladium rising 0.6% and 0.7%, respectively, while platinum dropped 0.7%.

At the Comex close: June gold gained $3.90 to $1,281; July silver rose 9 cents to $14.41; July platinum slid $5.40 to $791.70; and June palladium added $9.10, to $1,348.60 an ounce.