Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.6% to close under $1,832 as the prospects for tighten Fed policy and rising geopolitical tension pushed investors to take profits from most assets. The metal still gained 0.9% for the week, notching its second straight weekly rise on safe-haven and inflation-hedge demand.

Most markets pulled back today as uncertainty about monetary policy and possible conflict between the US and Russia drove widespread liquidations. The Fed's meeting next week should provide clarity about the pace of rate hikes, but for now traders are finding refuge in cash and Treasurys.

The selloff on Wall Street continued for another session. The Dow fell 1.3% to post a loss of 5.8% for January so far. The S&P 500 lost another 1.7% for a cumulative January slide of 7.7%. And the Nasdaq tumbled 2.8% today after falling, earlier in the week, into technical correction of more than 10% since its November high.

Gold was pressured by falling oil prices, which dropped for a second session after hitting a seven-year high earlier in the week. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Backstopping the metal, Benchmark 10-year Treasury yields fell back to 1.75% as investors sought protection from plummeting stocks. Lower yields support gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals mixed for the day but higher for the week. Silver dropped 1.6% for the session but still surged 6.1% this week. Platinum lost 1.5% on the day but gained 7.3% on the week. Palladium rose 1.5% for a weekly gain of 12%.

At the Comex close: February gold slid $10.80 to $1,831.80; March silver dropped 40 cents to $24.32; April platinum lost $15.70 to $1,035.10; and March palladium gained $30.60 to $2,104.30 an ounce.