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AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


6/21/2018: Gold slips along with most assets

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped another 0.3% to close under $1,271, a fresh 2018 low, as rising trade-war worries caused investors to favor US Treasurys over almost any other asset.

Trade tensions between the US and most trading partners, including China and the European Union, drove US equity indexes loweras investors eschewed risk. The Dow shed 0.8% for its sixth straight losing sessions while the Nasdaq fell 0.9%, surrendering most of yesterday's rise.

Speaking at a central banking conference in Portugal, Fed Chair Jerome Powell and ECB chief Mario Draghi separately said that growing protectionism is having a negative impact on global growth as industries postpone hiring and capital investment. Haruhiko Kuroda of the Bank of Japan said the dispute between China and the US could have a substantial impact on the Japanese economy.

The Philly Fed manufacturing index plunged to an 18-month low in June as new orders tumbled and optimism fell for activity in the coming six months.

The dollar fell 0.3% against major rivals, led by a surge in the UK pound after the Bank of England grew more hawkish in its outlook despite leaving interest rates unchanged today. US Treasurys rallied on trade concerns despite the falling dollar.

Although gold typically rises when the dollar falls, the Fed's recent signal that two more hikes are likely this year has caused traders to become more bullish on the buck despite today's downturn. The threat of retaliatory tariffs also supports the currency by increasing inflationary pressure, which may prompt further rate hikes.

The other precious metals were mostly lower, with platinum and palladium dropping 1.3% and 1.2%, respectively, while silver edged up 0.1%.

At the Comex close: August gold slipped $4 to $1,270.50; July silver added 2 cents, to $16.33; July platinum lost $10.80 to $863.20; and September palladium dropped $11.60 to $945.60 an ounce.


6/20/2018: Gold slides to 2018 low

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slid 0.3% to close under $1,275, the lowest level this year, as ongoing dollar-strength and a rally in tech stocks superseded trade concerns, reducing demand for alternative assets.

The S&P 500 picked up 0.3%, stemming a three-day side, and the Nasdaq rallied nearly 0.9% as trade-war worries with China ebbed slightly. Threats by the Trump administration to add another $200 billion in tariffs on Chinese goods, which shook up the markets earlier this week, are increasing being seen by traders as a negotiating tactic, easing worries.

The dollar edged 0.1% higher as demand for safe-haven currencies like the yen and Swiss franc subsided. The euro remined under pressure, however, following ECB chief Mario Draghi's comments yesterday that quantitative easing may be extended past December if growth and inflation falter. A stronger dollar typically weighs on gold and other commodities by making the more expensive overseas.

The other precious metals were mixed, with palladium and silver dropping 0.3% and less than 0.1%, respectively, while platinum rose 1.1%.

At the Comex close: August gold lost $4.10 to $1,274.50; July silver dropped a penny to $16.31; July platinum rose $9.10 to $874; and September slid $3.10 to $957.20 an ounce.


6/19/2018: Gold dips as new tariffs lift dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.1% to close under $1,279 as US threats to escalate a trade war with China boosted the dollar and yen, limiting the metal's safe-haven appeal.

President Trump is seeking an additional $200 billion in tariffs on Chinese goods, escalating friction between the world's two largest economies after China promised to retaliate for last Friday's announcement by the US of $50 billion in tariffs against it.

The Dow plunged more than 1% on the growing trade-war fears while Treasury notes rallied, helping to lift the dollar 0.3% against major rivals. Because Treasurys must be purchased in dollars, foreign investors have to exchange other currencies into greenbacks, bidding up the dollar's relative value. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

Within the basket of currencies composing the Dollar Index, only the yen and Swiss franc strengthen, being viewed as safer-havens. The euro weakened after Mario Draghi, president of the ECB, said the Eurozone still needs significant monetary policy accommodation to support inflation. Last week, the ECB said quantitative easing would end in December, but Draghi said today that the bond-buying program could be extended if necessary.

The other precious metals were also lower, with silver sliding 0.7% while platinum and palladium lost 2.2% and 2.3%, respectively.

At the Comex close: August gold dipped $1.50 to $1,278.60; July silver lost 12 cents to $16.32; July platinum fell $19 to $864.90; and September palladium shed $22.60 to $ 960.30 an ounce.


6/18/2018: Gold rises on trade-war worries

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.1% to close above $1,280 as growing trade-war worries pressured the dollar and boosted demand for safe-haven assets.

The Trump administration announced tariffs on $50 billion in Chinese goods on Friday, prompting a pledge of in-kind retaliation from China. The conflict between the world's two largest economies comes less than a week after President Trump imposed tariffs on Canada, Mexico, and the EU, and accused them of unfair trading practices at the annual G7 meeting.

With global growth already slowing, fears are increasing that recent spats between the US and most of its trading partners may escalate into full-scale protectionism, impeding growth in all nations concerned.

The dollar slid 0.1% against major rivals as traders shifted toward safe-haven currencies like the Swiss franc and Japanese yen. A weaker dollar supports gold and other commodities priced in it for international trade by making them less expensive overseas.

The other precious metals were mixed, with palladium edging up 0.1% while silver and platinum dropped 0.2% and 0.4%, respectively.

At the Comex close: August gold gained $1.60 to $1,280.10; July silver slipped 4 cents to $16.44; July platinum dropped $3.90 to $883.90; and September palladium added $1.10 to $982.90 an ounce.


6/15/2018: Gold tumbles on rate view, data

Source: Bill Musgrave, American Gold Exchange

Austin — Gold tumbled 2.3% to close under $1,279, the lowest level this year, as upbeat economic data and the prospect of monetary tightening in the US and Eurozone overcame trade-war worries to spark a technical selloff. The metal ended the week 1.9% lower.

The Empire State manufacturing index rose in June to an eight-month, adding to data showing the US economy is gathered momentum in the second quarter. Consumer sentiment also climbed, with income gains giving a boost to optimism over current conditions. Earlier this week, reports showed retail sales jumped in May to an annualized rise 5.9%, fueled in part by tax cuts and the lowest unemployment rate 18 years.

The Fed raised interest rates by a quarter-point this week, as expected, while changing their foreword guidance to indicate two more cuts by year's end, which was not expected. In addition, the ECB announced that it will end the bond-buying program known as quantitative easing by December. Tantamount to printing money, QE has suppressed the value of the euro by increasing the supply in circulation.

The combination of tighter monetary policies to come and stronger US economic growth prompted gold traders to liquidate long positions, triggering a series of stop-loss sales that picked up speed as the session wore on. Early gains by the dollar also undercut the metal.

Earlier this week, gold received support from rising trade-war tensions after the Trump administration criticized last weekend's the G7 meeting and prepared $50 billion in tariffs against China. That support eroded today, driving the metal from a weekly gain to a loss as monetary policies took precedence.

The other precious metals were also lower for the day and week. Silver lost 4.5% for a weekly drop of 1.6%. Platinum fell 2.5% today and 2% this week. Palladium surrendered 2.5% for a weekly decline of 2.4%.

At the Comex close: August gold lost $29.80 to $1,278.50; July silver plunged 78 cents to $16.48; July platinum dropped $23.10 to $887.80; and September slid $24.60 to $981.80 an ounce.


6/14/2018: Gold rallies on ECB, trade worries

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.5% to close at a three-week high above $1,308 despite a rising dollar as traders digested the outcomes from this week's meetings on monetary policy by Fed and ECB. Growing trade-war worries also sent investors toward safe havens, boosting demand for gold.

The European Central Bank declared its intention today to end quantitative easing by December, removing the primary stimulus that has supported the EU economy since the financial crisis of 2008. At the same time, the ECB pledged to hold interest rates unchanged until mid-2019.

On it own, the cessation of QE would be bullish for the euro. Tantamount to printing money, QE has flooded the Eurozone with cheap euros to help spur commerce and investment, driving down its value. But the accompanying decision to maintain ultra-low interest rates for another year overrode any upside momentum for the euro, driving its biggest one-day slide in eight months as foreign exchange trades sought other currencies, like the dollar, with the promise of higher yields.

The dollar rallied strongly on the ECB move, jumping 1.3% against the euro and 0.9% against a basket of rivals, on expectations that the Fed may accelerate the pace of rate hikes. At the end of yesterday's Fed meeting, the US central bank suggested it may hike four times this year instead of three, which would further increase the rate differential between the dollar and euro.

That gold rallied despite a stronger dollar is bullish for the metal, signaling pent-up demand caused in part by growing worries about global trade. The Trump administration said today that it is preparing to levy up to $50 billion in tariffs on China as early as Friday. In addition, the US will impose stiff duties on imports from Canada, Mexico, and the EU. All trading partners have threatened retaliatory measures.

The other precious metals were mostly higher, with silver and platinum rising 1.6% and 0.9%, respectively, while palladium dipped 0.1%.

At the Comex close: August gold gained $7 to $1,308.30; July silver jumped 27 cents to $17.26; July platinum rose $8.40 to $910.90; and September palladium edged down 60 cents to $1,006.60 an ounce.


6/13/2018: Gold gains, falls, rebounds after Fed

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.2% to close above $1,301 as the dollar fell ahead of the conclusion of the Fed's meeting on interest rates. The metal then briefly dropped below $1,298 after hours when the Fed released a mildly hawkish statement, only to rebound above $1,305 within minutes as traders digested the news.

The FOMC, as fully expected, raised the benchmark federal funds rate by a quarter-point to a range of 1.75% to 2%. In its post-meeting statement, however, the central bank shifted its position slightly to suggest a possible path to four rate hikes this year instead of three. Eight Fed official now project a fourth hike this year while seven continue projecting three, a change in one voter.

Gold slipped immediately on the release of the statement as the dollar rebounded from earlier losses. An additional hike would boost the buck by attracting more foreign exchange investment seeking higher yield.

But as traders digested the news, gold quickly bounced back into gains, rising above $1,305 in electronic trade, while the dollar tipped back into losses. During this tightening cycle, gold has regularly traded lower in anticipation of a rate hike and then spiked higher after its announcement, often to launch a sustained rally.

Sharply higher wholesale inflation also supported gold, which is often used as an inflation hedge. The Producer Price Index jumped 0.5% in May for a yearly rise of 3.1%, the most since 2012, on a steep rise in oil prices. The so-called core rate, which factors out volatile food and energy costs, rose just 0.1% to a yearly rate of 2.5%.

The other precious metals mostly finished higher, with silver and platinum rising 0.6% and 0.1%, respectively, while palladium dropped 0.8%.

At the Comex close: August added $1.90, to $1,301.30; July silver rose 10 cents to $16.99; July platinum picked up $1 to $902.50; and September fell $8.10 to $1,007.20 an ounce.


6/12/2018: Gold slips on Korea pact, CPI

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.2% to close under $1,300 as higher inflation and an agreement between the US and North Korea boosted the dollar, reducing demand for alternative stores of value.

President Trump and Kim Jong Un signed a historic pact to eliminate nuclear weapons on the Korean peninsula and work toward better relations. While scant on concrete commitments, the agreement nonetheless reduces friction between two leaders who recently threatened each other with nuclear devastation.

The dollar edged up 0.3% as the reduction in global tensions pulled foreign exchange investment away from safe-haven currencies like the Japanese yen. A rising dollar tends to weigh on gold and other commodities priced in it for international trade by making them more expensive in other currencies.

Also supporting the buck, consumer inflation as measured by the CPI rose 0.2% in May, notching its fastest annual rise in six years, at 2.8%. The more closely-watched core inflation rate, which strips out volatile food and energy costs, edged up to 2.2%.

Higher inflation will support the Fed in its likely decision to increase interest rates by a quarter-point during this week's meeting. But the relatively muted core rate is expected to provide little impetus to accelerate the pace of rate hikes this year.

The other precious metals were also lower, with silver dropping 0.4% while platinum and palladium lost 0.5% and 0.1%, respectively.

At the Comex close: August gold slipped $3.80 to $1,299.40; July silver dropped 6 cents to $16.89; July platinum fell $4.90 to $901.50; and September palladium dipped $1.20 to $1,015.30 an ounce.


6/11/2018: Gold edges up on flat dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged up 0.1% to close above $1,303 as the dollar treaded water and traders prepared for this week's FOMC meeting and the summit between the US and North Korea.

After disrupting last week's G7 meeting by accusing the EU and Canada of unfair trade practices and calling for the reinstatement of Russia, President Trump left early and went to Singapore for an unprecedented summit with the dictator of North Korea, Kim Jong Un. The President's stated goal is the denuclearization of the Korean peninsula.

The dollar traded sideways, pressured by a rising euro but supported by a softer Canadian loonie and Japanese yen. The loonie fell after President Trump's hardline indictment of Canadian trade practices complicated the future of NAFTA. The yen, often seen as a safe-haven currency, slipped on hopes that the US-North Korea meeting may defuse tensions in Asia brought about by Kim Jong Un's ambitions for nuclear weapons.

Gold's gains were kept in check by expectations that the Fed will raise interest rates by a quarter-point when it meets this week. However, traders also speculate that the central bank will signal its intention to maintain a measured, gradual approach to further rate hikes. Higher interest rates pressure gold by boosting the dollar.

The other precious metals were also higher, with silver rising 1.3% while platinum and palladium added 0.1% and 1.1%, respectively.

At the Comex close: August gold added 50 cents to $1,303.20; July silver jumped 21 cents to $16.95; July platinum edged up 70 cents to $906.40; and September palladium climbed $10.80 to $1,016.50 an ounce.


6/8/2018: Gold ends flat, rises on week

Source: Bill Musgrave, American Gold Exchange

Austin — Gold traded nearly flat, inching down 30 cents to close under $1,303 before bouncing back, as tensions from the Group of 7 meeting in Canada supported the metal despite a rising dollar and falling oil. Gold ended the week with a gain of 0.3%.

President Trump lashed out at US allies and trading partners and said he would leave the Group of 7 meeting early, stoking new trade-war worries. He accused Canada and the EU of unfair trade practices and demanded that Russia be readmitted to the group. Russia was banned from the Group of 8 after invading the Crimea and Ukraine.

The dollar edged up 0.1% as traders moved toward safety on trade tensions. Gains against emerging market currencies and the euro, which fell on disappointing German industrial data, were largely offset by losses against the yen, also considered a haven in times of turmoil. The buck still lost 0.4% on the week.

Meanwhile, West Texas Intermediate crude fell 0.5% as traders speculate that OPEC will lift production caps when it meets later this month. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed on the day but higher for the week. Silver dropped 0.4% but held a weekly gain of 1.8%. Platinum rose 0.6% today but dipped 0.1% this week. Palladium dropped 0.4% but held gains of 0.9% this week.

At the Comex close: August gold inched down 30 cents to $1,302.70; July silver fell 8 cents to $16.74; July platinum added $5.40, to $905.70; and September palladium slid $3.90 to $1,005.70 an ounce.

  

Metal Ask      Change
Gold $1,271.36           $3.19
Silver $16.47           $0.08
Platinum $867.61           $0.17
Palladium $965.69           $7.28
In US Dollars

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