Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% to close above $1,291 as trade worries and geopolitical concerns boosted demand for safe-havens assets despite a stronger dollar. The metal still finished the week down 2.2%.

Uncertainty grew around the fate of NAFTA after President Trump's chief negotiator said yesterday that he is "nowhere near" a deal on a revised trade pact despite a hard deadline of May 17. The statement suggested that a new agreement will not be ready before midterm elections, extending the process and confusion into next year.

Talks this week between China and the US to avert a trade war hit a snag after Beijing denied a claim from the Trump team that China offered to cut its trade surplus by $200 billion. The President responded by saying China is "spoiled" and negotiations are unlikely to yield results.

In geopolitics, Italy slid closer towards a possible fiscal crisis after its new anti-euro government offered an economic plan to boost spending and slash taxes. Credit-ratings firms warned that the proposals could damage the nation's credit rating and elevate its borrowing costs, threatening its financial health.

Treasury prices rose in response to the conflicts as investors sought safe-havens, pushing down yields from their recent multi-year highs. Gold came under heavy pressure earlier this week when yields on benchmark 10-year Treasury notes rose to a seven-year high above 3.11%. Upbeat economic reports raised expectations for higher inflation, which reduces the value of fixed-income payments from bonds, spurring bondholders to sell.

The dollar rose 0.2%, capping gold's daily gain, as the euro sold off sharply for another session on worries over Italy. A rising dollar typically weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals were lower for the day and week. Silver slid 0.2% for a weekly loss of 1.8%. Platinum dropped 0.6% today and 4.3% this week. Palladium shed 1.8% on the day and 2.5% on the week.

At the Comex close: June gold gained $1.90 to $1,291.30; July silver dipped 2 cents to $16.46; July platinum slid $5.60 to $886.50; and June palladium dropped $17.30 to $960.20 an ounce.