Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained another 1.6% to close above $3,280 on flights to safety as the dollar weakened after Fed officials voiced concern about the effect of current trade policies on the economy. Silver rose 2.1% to finish at $32.98 an ounce.

Fed officials weighed in on the economy today, voicing caution over tariffs. St. Louis Fed president Alberto Musalem said the job market is likely to weaken as Trump tariffs take hold. Cleveland Fed President Beth Hammack separately said current trade policies could lead to stagflation, when inflation combines with stagnant economic growth.

The dollar fell 0.3% against major rivals led by the yen, a traditional safe-haven currency. The buck was already under pressure after yesterday's downgrade of US sovereign debt by Moody's rating service.

A weaker dollar lifts gold and other commodities by making them less expensive in other currencies.

Platinum and palladium surged 4.9% and 4.2%, respectively, as intensifying hostilities between Russia and Ukraine prompted Britain and the EU to announce new sanctions against Russia, a leading producer of PMGs.

At the New York spot close: gold gained $51.40 to $3,280.30; silver rose 67 cents to $32.98; platinum picked up $48.80 to $1,050.60; and palladium climbed $41.15 to $1,017.25 an ounce.