Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold eased 1% to close under $4,242 on profit-taking after President Trump walked back his tariff threats against China, lifting equities, yields, and the dollar. Bullion still notched a weekly gain of 6.7%. Silver dropped 2.4% today but rose 5.8% this week to finish at $51.75.

After sparking new trade war worries by threatening additional 100% tariffs on China, Trump said today that this notion was "not sustainable" and he would meet with China's leader Xi Jinping over easing tensions and loosening restrictions on rare earth exports.

Wall Street applauded the de-escalation, with all three major US indexes adding 0.5%.

Benchmark 10-Year Treasury yields rose back above 4% as investors shifted from safety to risk. Rising yields weigh on gold by increasing the opportunity costs for holding it instead of bonds for safety.

Tracking with yields, the dollar added 0.1% against major rivals, pressuring gold and other commodities by making them more expensive overseas.

Gold reached a succession of record highs above $4,200 this week on trade war worries, the US government shutdown, and expectations that the Fed will cut interest rates when it meets next week.

In a note to clients, Bank of American strategists said gold could peak at $6,000 an ounce in 2026, while 30-year Treasury yields could drop below 4%. Bullion has already returned around 65% this year.

Platinum fell 7.6% for a weekly rise of less than 0.1%. Palladium dropped6.8% today but gained 2.3% this week.

At the New York Spot close: gold fell $38.55 to $4,241. 65; silver slid $1.25 to $51.75; platinum shed $132.60 to $1,602.30; and palladium lost $109 to $1,480.95 an ounce.