Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close under $1,192 as Canada joined the new trade deal with the US and Mexico, boosting risk appetite and reducing demand for alternative assets.

Bowing to pressure from the Trump administration, Canada unexpectedly agreed to a revised NAFTA treaty, resurrecting the $1.2 trillion open-trade pact that seemed all but dead last week. The new deal avoids tariffs in North American trade while making it harder for automakers to exploit cheap labor in Mexico.

Risk appetite surged on the breakthrough, with the Dow surging more than 0.8% and the S&P 500 rising within a few points of its record in intraday trading.

The dollar rose 0.2% against major rivals despite strong rallies in the Canadian loonie and Mexican peso flowing the NAFTA update. The euro fell, boosting the buck, after reports the EU will reject Italy's proposal to lift its budget deficit to 2.4% of GNP next year, fat higher than the amount allowed by its creditors.

The markets largely ignored data showing the ISM manufacturing index fell in September on tariff concerns.

The other precious metals were mixed, with silver and palladium dropping 1.4% and 1.8%, respectively, while platinum added 0.7%.

At the Comex close: December gold slid $4.50 to $1,191.70; December silver dropped 21 cents to $14.51; January platinum added $5.50, to $827.90; and December palladium lost $19.80 to $1,056.40 an ounce.