Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,320 as the dollar bounced higher and equities rallied sharply on upbeat data, diminishing demand for alternative assets. The metal reached as high as $1,329 in intraday trade before sliding back on profit-taking.

The ISM nonmanufacturing index held near a 12-year high in February, signaling strong momentum in the US services industries despite labor shortages and higher prices. The Markit PMI for services was also strong, beating expectations though dipping slightly from January.

The Dow broke a four-session skid, jumping more than 1.5%, as bargain-hunters looked past trade-war rumblings to see an energetic US economy, upbeat data, and solid corporate earnings. President Trump rattled the market last week by declaring stiff tariffs on steel and aluminum, triggering fears of retaliation by primary US trading partners.

The dollar edged higher, adding 0.1% against major rivals, after eroding last week on trade-war worries. A rising dollar typically pressures gold and other commodities priced in it for global trade by making them more expensive overseas.

In a potentially bullish development for gold, Italian voters rejected mainstream candidates for euro-skeptic, populist parties in a general election over the weekend. With no clear majority established, political uncertainty may hamper the Eurozone's third-largest economy for months and possibly threaten the EU itself.

The other precious metals were also lower, with silver and platinum dropping 0.3% while palladium lost 0.9%.

At the Comex close: April gold slipped $3.50 to $1,319.90; May silver dropped fell 5 cents to $16.41; April platinum slid $3 to $962.10; and June palladium shed $8.65 to $977.50 an ounce.