Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained for a second session, adding 0.2% to close above $1,193, as tumbling equities and a softer dollar spurred demand for alternative assets.

Global equities fell sharply, with the Dow and S&P 500 plunging 3.2% while the Nasdaq plummeted 4%, as trade worries and rising Treasury yields caused investors to shed risk. The IMF warned this week that tariffs and protectionism will shave nearly 1% from global growth by 2019, according to forecasts.

Yields on benchmark 10-year Treasury notes to just under the seven-year high after the BLS reported wholesale prices rose 0.2% in September and 2.6% for 12 months. Rising inflation causes bondholders to sell off lower yielding notes, driving yields higher.

The dollar dropped 0.2% against major rivals led by the pound and euro as officials of the EU signaled a compromise Brexit deal may be struck, allowing the UK to remain within the EU customs regime. A falling dollar typically supports gold and other commodities by making them less expensive in other currencies.

The other precious metals were mixed, with palladium rising 0.5% while silver and platinum fell 0.5% and 0.2%, respectively.

December gold added $1.90, $1,193.40; December silver slid 7 cents to $14.33; January platinum fell $1.60 to $827.30; and December palladium rose $5.10 to $1,067.20 an ounce.