Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold gained 0.4% to close at $3,353 on safe-haven inflows as the dollar retreated after President Trump resumed his attacks Fed Chair Jerome Powell. Bullion dipped $3 for the week. Silver added 0.4% to finish at $38.22 but fell 1.2% for the week.

Trump heaped new scorn the Fed Chair today, calling him a "numbskull" for not slashing interest rates. At the same time, Fed Governor Waller echoed Trump's call for a rate cut this month. In the same speech, he said would be happy to become Fed Chair.

Waller was one of two FOMC members, both Trump appointees, who advocated for a rate cut in June, according to the minutes from the meeting. The rest of the committee argued for caution until the fallout from trade wars could be assessed.

Earlier this week, the President floated the idea of firing Powell, but then quickly retracted after it after stocks, the dollar, and Treasury yields all plunged on concerns about the Fed losing its independence.

New trade war worries also lifted gold after the White House indicated a target of 15-20% tariffs on all products imported form the EU.

The dollar fell 0.3% against major rivals as those worries were rekindled. A falling dollar lifts gold by making it cheaper overseas. Benchmark 10-year Treasury yields also retreated, supporting gold by decreasing the opportunity cost for holding it instead of bonds.

Platinum fell 1.1% today and 0.9% this week. Palladium added less than 0.1% for a weekly rise of 5.6%.

At the New York spot close: gold gained $12.90 to $3,353; silver shed 17 cents to $38.22; platinum dropped $15.90 to $1,438.50; and palladium added 90 cents, to $1,291.90 an ounce.