Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to close at a two-week low above $1,316 as solid GDP data boosted the dollar, reducing demand for alternative stores of value. The metal dipped 0.7% in February, ending a four-month run of monthly gains.

The US economy grew 2.6% in the fourth quarter, according to figures released by the government, and posted 2.9% overall growth for the year. While substantially lower than the 4.2% growth in Q2 and 3.4% in Q3, the Q4 numbers were higher than forecast because of strong consumer spending.

The dollar recouped earlier losses, adding around 0.1% against major rivals, as traders speculated that the good GDP news could put the Fed back on a path to tightening. Dovish comments from Fed Chair Jerome Powell and other central bankers suggested recently that the Fed may pause rate hikes until the end of the year.

The dollar closed February with a 0.6% gain, driven mainly by optimism that the US and China would resolve the trade war that slowed both economies in Q4. A stronger dollar pressures gold and other commodities by making them more expensive overseas.

The other precious mixed for the day and month. Sliver fell 0.8% today and 2.7% in February. Platinum added 0.6% to post a 6.1% rise this month. Palladium climbed another 1.7% to tally a 15% monthly increase.

At the Comex close: April gold slid $5.10 to $1,316.10; May silver dropped 13 cents to $15.63; April platinum added $5.30, to $875.20; and June palladium jumped $24.30 to $1,501.50 an ounce.