Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.4% to close near $1,347 as renewed worries about a trade war with China tanked stocks and pressured the dollar, boosting demand for safe-haven assets.

Responding to President Trump's decision to penalize US imports of Chinese steel and aluminum, China retaliated by levying tariffs against a broad range of US goods today, including pork, fruit, and 120 types of commodity items.

US and global stock indexes tumbled on fears that protectionist trade policies between the world's two largest economies may imperil corporate profits and undermine economic growth. The Dow lost 2.5% while the Global Dow dropped 1.3%.

In addition, the President attacked Amazon again on Twitter, claiming it takes advantage of the US Postal Service and does not pay enough in taxes. Shares in the retailing behemoth plunged 5%, triggering a route in the tech sector with the Nasdaq losing around 3% to wipe out all its gains for 2018.

The dollar slipped on the trade war rumblings, dropping around 0.1% against major rivals. The beleaguered buck fell around 2.7% in the first quarter on trade concerns and speculation that the Fed may be less aggressive with rate hikes than previously thought, given a slowdown in GDP growth and soft inflation.

US Treasury 10-year notes rallied, pushing yields lower, as investors rushed to safe havens.

Separately, the Treasury Department reported the US will borrow nearly $300 billion this week to cover expenses. The government ran a $215 billion deficit in February, the biggest in six years, and reduced revenue from President Trump's tax cuts and the $1.3 billion spending bill signed last week will further increase US borrowing costs in coming months.

The annual deficit is projected to pass $1 trillion as early as next year, according to the nonpartisan Committee for a Responsible Federal Budget. More alarming, annual interest payments on US debt are set to quadruple to more than $1 trillion by 2028, or 3.6% of the entire economy, if current fiscal policies remain in place, according to the CRFB.

The other precious metals were mostly higher, with silver and platinum rising 2.3% and 0.6%, respectively, while outlier palladium fell 1.5%.

At the Comex close: June gold surged $19.60 to $1,346.90; May silver leapt 37 cents to $16.64; July platinum added $5.40, to $938; and June palladium dropped $14.25 to $929.55 an ounce.