Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.4% to close at $1,296.50, its highest level this month, as stocks and the dollar fell on uncertainty about the progress of tax reform. Gold finished the week 1.8% higher for its second straight weekly win. Silver jumped 1.8% for a weekly gain of 3%.

The Dow shed 0.4% and the S&P 500 around 0.2% as investors grew increasingly skeptical about the likelihood of a quick passage of Republican tax cuts. Stocks received a temporary boost yesterday from the House vote in favor of the biggest tax reform since the 1980s. However, that plan is facing stiff resistance in the Senate, where the Republican majority is razor-thin.

In a Reuters poll of more than 60 economists this week, nearly two-thirds do not expect the tax bill to make it through Congress this year because of conflicts between House and Senate plans. The majority also doubt that tax cuts will provide a significant boost to the economy, given the lack of wage growth and high current employment.

Also pressured by tax doubts, the dollar fell 0.3% against major rivals, boosting gold and other commodities denominated in it for international trade. Concerns about the ongoing investigation into Russian meddling also weighed on the buck following reports that the Mueller probe subpoenaed the Trump election campaign for Russia-related documents last month.

The other precious metals were also higher. Platinum surged 2% today and 2.4% this week. Palladium added 0.8% today to close the week virtually unchanged.

At the Comex close: December gold surged $18.30 to $1,296.50; December silver climbed 30 cents to $17.37; January platinum rose $18.40 to $954.60; and December palladium picked up $8.05 to $992.90 an ounce.