Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close at a three-week high above $1,211 as the dollar receded on sentiment that trade war threats between the US and China will not impede US growth.

The dollar dropped 0.6% to a nine-week low against major rivals as traders digested this week's developments in the ongoing tariff drama between the China and US. After President Trump announced $200 billion in new duties, China retaliated with $60 billion in tariffs against the US. The relatively mild reaction has prompted traders to believe the hardline negotiations may soon reach a resolution, removing some of the safe-haven premium enjoyed by the dollar in recent months.

The buck was also pressured by a rising British pound, itself boosted by upbeat retail sales data in the UK. The pound has been in an uptrend since Brexit negotiators announced recently that a deal is likely within a matter of weeks. A weaker dollar supports gold and other commodities by making them less expensive overseas.

US equities also shrugged off trade-war threat, with the Dow climbing 1% to enter record-territory for the first time since January. The Global Dow also added 1%.

The World Gold Council reported to day that central banks added a net total of 193.3 tonnes of gold to their reserves in the first half of 2018, up from 176 tonnes during the same period last year. It was the strongest first half of a year since 2015. Like investors, central banks buy gold to diversify currency risk. They account for around 10% of worldwide gold demand.

The other precious metals were also higher, with silver adding 0.2% while platinum and palladium picked up 1.5% and 1.3%, respectively. Palladium marked seven straight winning sessions, driven by rising demand forecasts in the auto industry.

At the Comex close: December gold rose $3 to $1,211.30; December silver added 3 cents, to $14.31; October platinum picked up $12.30 to $834.20; and December palladium climbed $13.40 to $1,044.20 an ounce.