Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 2.4% to close near $1,520, a new six-year high, after monetary easing by several central banks fueled worries about slowing global growth and sent investors into safe-haven assets. Silver soared 4.6% to just under $17.20 for its biggest rise in three years.

Central banks in India, New Zealand, and Thailand cut benchmark rates today to stimulate their flagging economies, reflecting concerns that the increasingly bitter trade dispute between the US and China could push the global economy toward recession. New Zealand's half-point reduction to a record-low 1% was especially unexpected.

Friction between the world's two largest economies reached a new level this week after China devalued the yuan to the lowest level since 2008, prompting the White House to brand it a currency manipulator. The move came in response to President Trump's surprise announcement last week of 10% tariffs on a new $300 billion in Chinese goods.

Although China stepped in the next day to stabilize the yuan, the message was clear: its currency may become a weapon in the trade war. Analysts are concerned that other nations may follow suit, devaluing their currencies to keep their exports competitive in the current low-growth environment. Today's rate cuts by India, New Zealand, and Thailand underscore that concern.

The dollar fell against major rivals as traders shifted into safe-haven currencies like the yen and Swiss franc. Treasury yields slid under 1.7% as investors bid up government bonds.

The other precious metals were mixed, with platinum rising 2.1% while palladium fell 1.9%.

At the Comex close: December gold surged $35.40 to $1,519.60; September silver jumped 75 cents to just under $17.20; October platinum climbed $17.80 to $871; and September palladium dropped $26.70 to $1,410.30 an ounce.