Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.1% to close just over $1,188 as the dollar extended its rally, reducing demand for alternative stores of value. The metal finished the week down 1.4% for its first weekly loss of the year.

The dollar added 0.1% against major rivals on renewed speculation that Donald Trump's policies will promote growth. After dropping to a seven-week low early in the week, the buck has risen for two sessions on executive orders to open two oil pipelines and cut some Obama-era regulations.

Trump's promises to spend heavily on rebuilding infrastructure while slashing taxes are viewed as highly inflationary and could spur the Fed to accelerate rate hikes this year. Higher rates boost the dollar by attracting foreign exchange investment seeking higher yields.

The dollar's gains, and gold's losses, were limited by some surprisingly soft economic data. The Commerce Department reported GDP growth slowed to just 1.9% in Q4, far less than the 3.5% growth recorded in Q3. In a separate report, orders for durable goods fell for the second straight month.

The other precious metals were mixed for the day and week. Silver jumped 1.7% today to salvage a weekly gain of 0.6%. platinum added 0.2% for a gain of 0.8% this week. And palladium gained 2% today but lost 6.3% this week.

At the Comex close: February gold dipped $1.40 to $1,188.40; March silver jumped 29 cents to $17.14; April platinum added $1.60, to $983.30; and March palladium rose $14.15 to $738.60 an ounce.