Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rose 0.4% to close at a record high near $2,948 on falling Treasury yields as investors continue to seek shelter from Trump tariffs and softer US economic performance. Silver shed 1.2% to finish at $32.57 an ounce.

Last week, President Trump announced new tariffs on pharmaceuticals, autos, lumber, and semiconductors to be phased in over the next month. These come atop the 10% on China imports, 25% on steel and aluminum imports, and "reciprocal" tariffs on all trading partners.

In addition, 25% tariffs on all imports from Mexico and Canada, two of the biggest trading partners for the US, are scheduled to start within weeks if not postponed again.

The fear of retaliatory trade wars is stoking uncertainty about the economy, which is already showing signs of slowing down. The S&P Global PMI for the US services sector fell into contraction this month. Service industries make up 75% of the US economy. And consumer sentiment plunged to a 15-month low on concerns about employment and prices.

Benchmark 10-year Treasury yields fell under 4.4% to a 10-week low as investors sought the perceived safety of government debt. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Platinum and palladium lost 0.5% and 3.2%, respectively.

At the New York spot close: gold gained $10.30 to $2,947.90; silver shed 40 cents to $32.57; platinum slipped $4.40 to $966.90; and palladium retreated $32.40 to $950 an ounce.