Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close near $1,205 on safe-haven inflows as the dollar retreated and Donald Trump was sworn in as the 45th President of the United States. The metal ended the week 0.7% higher to mark its fourth straight weekly win.

The dollar dropped 0.3% against major rivals after Janet Yellen said in a speech late yesterday that the Fed should "raise interest rates slowly or risk harm to the recovery." The dovish statement helped to offset hawkish comments from the Fed Chair a few days before, when she said the Fed may raise rates "a few times a year" through 2019.

Rising rates tend to boost the dollar by attracting foreign exchange investment in search of higher yield. A stronger dollar, in turn, can weigh on gold and other commodities denominated in it for international trade by making them more expensive overseas.

Trump's inauguration spurred some flights to safety as traders hedged against the uncertainty of his polices. Campaign promises to boost government spending while slashing taxes would likely boost growth and stoke inflation. But his protectionist rhetoric, reinforced today by an "America First" theme in his inauguration speech, could destabilize trade relations and damage exports.

The other precious metals were higher for the day and mixed for the week. Silver picked up 0.2% for a weekly win of 1.6%. Platinum rose 2.1% but still lost 1.1% on the week. Palladium jumped 5% today to gain 5.2% this week.

At the Comex close: February gold gained $3.40 to $1,204.90; March silver picked up 3 cents to $17.03; April platinum rose $19.60 to $976; and March jumped $37.25 to $788.40 an ounce.