Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4%, erasing Friday's loss to close near $1,318, as a selloff in stocks and a falling dollar boosted demand for safe-haven assets.

US benchmark indexes fell sharply, with the Dow dropping 1.7% and the S&P 500 1.8%. Tech shares were the hardest, driving the Nasdaq 2.3% lower as Facebook shares were hammered by public outcry over its management of private user data.

Stocks were also pressured by expectations that the Fed will raise interest rate when it meets this week. Tighter monetary policy makes credit more expensive, which can limit the availability of cheap money for capital expenditure by corporations and speculative investment by individuals.

The dollar fell 0.4% against major rivals after the UK and EU came to a general Brexit transition agreement. The tentative two-year deal, seen as market friendly to both sides, boosted both the euro and pound. A falling dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with silver and platinum rising 0.3% and 0.4%, respectively, while palladium dipped 0.1%.

At the Comex close: April gold gained $5.50 to $1,317.80; May silver picked up six cents to $16.33; April platinum rose $4.20 to $954.40; and June palladium dipped $1.15 to 987.40 an ounce.