Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped another 0.3% to close under $1,271, a fresh 2018 low, as rising trade-war worries caused investors to favor US Treasurys over almost any other asset.

Trade tensions between the US and most trading partners, including China and the European Union, drove US equity indexes lower as investors eschewed risk. The Dow shed 0.8% for its eighth losing sessions while the Nasdaq fell 0.9%, surrendering most of yesterday's rise.

Speaking at a central banking conference in Portugal, Fed Chair Jerome Powell and ECB chief Mario Draghi separately said that growing protectionism is having a negative impact on global growth as industries postpone hiring and capital investment. Haruhiko Kuroda of the Bank of Japan said the dispute between China and the US could have a substantial impact on the Japanese economy.

The Philly Fed manufacturing index plunged to an 18-month low in June as new orders tumbled and optimism fell for activity in the coming six months.

The dollar fell 0.3% against major rivals, led by a surge in the UK pound after the Bank of England grew more hawkish in its outlook despite leaving interest rates unchanged today. US Treasurys rallied on trade concerns despite the falling dollar.

Although gold typically rises when the dollar falls, the Fed's recent signal that two more hikes are likely this year has caused traders to become more bullish on the buck despite today's downturn. The threat of retaliatory tariffs also supports the currency by increasing inflationary pressure, which may prompt further rate hikes.

The other precious metals were mostly lower, with platinum and palladium dropping 1.3% and 1.2%, respectively, while silver edged up 0.1%.

At the Comex close: August gold slipped $4 to $1,270.50; July silver added 2 cents, to $16.33; July platinum lost $10.80 to $863.20; and September palladium dropped $11.60 to $945.60 an ounce.