Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.5% to close above $1,356 after comments from Treasury Secretary Steven Mnuchin triggered a selloff in the dollar, spurring demand for alternative stores of value. Silver soared 3.4% to a four-month high near $17.50.

Speaking at the World Economic Forum in Davos, Mnuchin told reporters that "a weaker dollar is good for trade," apparently abandoning the "strong dollar" policy that has been the official line for decades. His comments echoed statements made by President Trump earlier in the year.

The dollar quickly tumbled after the comments, losing 1% against major rivals to reach a new three-year low. The buck has now fallen around 12% in the thirteen months. Because gold and other commodities are priced in dollars for international trade, weakness in the US currency makes them less expensive to users of other currencies.

Treasury notes also dropped on Mnuchin's statement as foreign investors, fearing deeper currency depreciation, stayed away from US government bonds. The Treasury may have a harder time financing the astronomical US debt of nearly $19 trillion under a weak-dollar policy.

The other precious metals were also higher, with platinum adding 0.8% while palladium climbed 2%.

At the Comex close: February gold jumped $19.60 to $1,356.30; March silver rallied 58 cents to $17.49; April platinum added $8, to $1,015.80; and March palladium climbed another $22.05 to $1,106.30 an ounce, a new record.