Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold rocketed 3% higher to close above $3,411 as an upsurge in demand for physical bullion in China and renewed concerns about Trump tariffs fueled gold to a two-week high. Silver jumped 2.8% to finish at 33.11 an ounce.

Following a five-day closure of markets for China's Labor Holiday, pent-up Chinese demand for gold fueled a massive rise in the global gold price. China runs neck and neck with India as the world biggest gold consumers.

Ramped up buying by central banks is also propelling the rebound after last week's correction brought lower prices. Central banks are adding gold to their currency reserves to offset risk in US assets, especially the dollar, amid trade volatility.

Gold's surge today was additionally driven by safe-haven inflows after President Trump announced tariffs on pharmaceuticals, triggering new concerns that trade wars will weigh on economic growth and cause higher inflation.

Against this volatile backdrop, the Fed begins its two-day meeting on monetary policy. The market will carefully parse the forthcoming policy statement for clues about the direction of interest rates.

Equities, Treasury yields, and the dollar all retreated on trade worries.

Platinum and palladium added 2.8% and 3.6%, respectively.

At the New York spot close: gold gained $100.10 to $3,411.40; silver rose 91 cents to $33.11; platinum picked up $27.15 to $987.30; and palladium climbed $33.90 to $979.50 an ounce.