Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.5% to close at a 7-week high of $1,311 after President Trump threatened to impose new tariffs on Mexico, causing stocks and the dollar to flounder and safe-haven assets to rally. The metal finished May with a gain of 2%, its first monthly rise since February.

Against the advice of his chief trade representative, Richard Lighthizer, the President today threatened to impose tariffs on all items imported from Mexico until that nation stops illegal immigration to the US. Duties will begin at 5% and increase by 5% more every month, up to 25% by October.

The surprise move rattled financial markets, causing all three major US stock indexes to tumble 1.3%. Both the Dow and S&P 500 suffered their worst May since 2010, losing around 6.2% each. Almost all the losses followed the President's declaration in early May that he would raise tariffs on $200 billion in Chinese goods from 10% to 25%.

Adding to trade-war tensions, China today raised tariffs on up to $60 billion in US goods in retaliation for the President's escalation this month.

The dollar fell 0.4% against major rivals as jittery traders shifted into safe-haven currencies like the yen and Swiss franc. Treasury yields continued to fall as investors flocked into the safety of US government bonds.

The other precious metals were mixed for the day and month. Silver 0.5% today but lost 2.9% in May. Platinum edged up a dime but lost 11% this month. Palladium fell 2.5% today for a monthly decline of 3.6%.

At the Comex close: August gold surged $18.70 to $1,311; July silver rose 8 cents to $14.57; July platinum added 10 cents, to $794.20; and September palladium dropped $34.20 to $1,331.50 an ounce.