Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold surged 2% to close at a new record high of $2,823 on safe-haven inflows as investors took shelter from the uncertainty surrounding Trump tariff plans. Gold futures ended even high at $2,845, also a record. Silver jumped 3.7% to finish at $32.36 an ounce.

With this week’s Fed meeting behind us, investors turned their attention to the potential downsides of the fluctuating tariff threats of the new Trump administration. Earlier this week, the White House said it plans to place steep levies on goods from Canda and Mexico along with possibly smaller tariffs on China.

Most investors worry that new tariff policies could trigger trade wars and lift prices to consumers. Gold is often sought as a hedge against higher inflation and economic uncertainty.

Benchmark 10-year Treasury yields pulled back to just above 4.5% as traders sought the perceived safety of government debt. Lower yields support gold by decreasing the opportunity cost for holding it instead of bonds for safety.

Tracking lower with yields, the dollar dropped 0.2%, lifting gold and other commodities by making them less expensive in other currencies, spurring demand overseas.

Platinum and palladium rose 5.3% and 4%, respectively.

At the New York spot close: gold surged $53.90 to $2,823; silver rose $1.13 to $32.36; platinum picked up $51.10 to $1,016.50; and palladium added $38.20, to $1,004.60 an ounce.