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


1/22/2018: Gold dips after Senate ends shutdown

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped less than 0.1% to close just under $1,331 after the Senate voted to reopen the government, boosting risk appetite and diminishing demand for safe havens.

After three days, the Senate ended the government shutdown by advancing a temporary spending bill that provides funding through February 8. It also grants temporary protection from deportation for the so-dreamers, young undocumented immigrants previously covered by DACA.

The deal must be approved by a full vote in the Senate and House, and signed by President Trump, before taking effect. And big differences between the parties over immigration and funding must still be resolved before a new budget is passed.

Wall Street rallied to record highs on the news, with the Nasdaq jumping 1% while the Dow and S&P 500 added 0.6% and 0.8%, respectively. The Global Dow added 0.6%.

The dollar also finished lower, slipping to a loss of 0.1% after rising to modest gains before the Senate agreement.

The IMF warned today that financial markets are at risk of correction if US inflation rises faster than expected.

The other precious metals were also lower, with silver slipping 0.3% while platinum and palladium dropped 2.3% and 0.6%, respectively.

At the Comex close: February gold dipped $1.20 to $1,331.90; March silver slipped 5 cents to $16.99; April platinum lost $23.30 to $996.80; and March palladium slid $6.10 to $1,092.30 an ounce.


1/19/2018: Gold rises on shutdown worries

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.4% to close at $1,333 as worries about a possible shutdown of the US government boosted demand for safe havens. For the week, the metal slipped 0.1% to break a five-week winning streak.

The federal government runs out of funding at midnight tonight unless the Senate passes a stop-gap measure, approved by the House yesterday, that will keep the lights on until February 16. Democrats are apparently planning to filibuster the bill unless it includes protection for the so-called "Dreamers," young immigrants shielded from deportation by the Obama-era DACA program.

The last government shutdown occurred in 2011, when Republicans sought to block Obamacare, and resulted in around $24 billion in lost GDP.

Consumer sentiment fell to a six-month low in January as uncertainty about rising prices and the benefits of the new tax laws eroded optimism.

After trading at three-year lows early in the session on government-shutdown concerns, the dollar crept up to gain 0.1% after the UK pound weakened on unexpectedly soft retail-sales data.

The other precious metals were higher for the day but mixed for the week. Silver picked up 0.5% but still closed the week down 0.6%. Platinum rose 1.3% on the day and 2.5% on the week. Palladium added 0.5% but fell 0.6% this week.

At the Comex close: February gold gained $5.90 to $1,333; March silver climbed 9 cents to $17.04; April platinum rallied $12.90 to $1,020.10; and March palladium added $5.10, to $1,098.40 an ounce.


1/18/2018: Gold retreats on profit-taking

Source: Bill Musgrave, American Gold Exchange

Austin — Gold retreated 0.9% to close above $1,327 as traders took profits from its 8% rally over the past month. The metal had risen for five straight sessions and nine of eleven this year before today's correction.

Most asset classes tracked lower on the day. US equities fell from record highs, with the Dow dropping 0.4% and the S&P 500 0.2%. The dollar also lost, surrendering 0.4% against major rivals as forex investors shifted to the euro and pound.

Yields on 10-year Treasury notes jumped to 2.6%, the highest since March, after yesterday's Beige Book report from the Fed suggested that labor shortages are beginning to translate into higher wages.

Worries of a potential US government shutdown are creating some unusually trading patterns. Typically, weakness in equites and the dollar supports gold as investors seek out safe havens and dollar-priced commodities become cheaper overseas. Today, however, they all fell together as investors liquidated holdings as the government funding deadline approaches.

If Congress fails to pass a budget by Saturday, stopgap funding expires. Federal employees will be furloughed, and most functions will cease, to the detriment of economic growth. The last shutdown, in October 2013 over Obamacare, lasted 16 days and cost the economy $24 billion.

The other precious metals were also lower, with silver falling 1.2% while platinum and palladium slid 0.4% and 1.5%, respectively.

At the Comex close: February gold retreated by $12 to $1,327.20; March silver lost 22 cents to $16.95; April platinum slid $3.70 to $1,007.20; and March palladium dropped $16.40 to $1,093.30 an ounce.


1/17/2018: Gold rises as buck, bitcoin fall

Source: Bill Musgrave, American Gold Exchange

Austin — Rising for a fifth straight session, gold added another 0.2% to close above $1,339, a four-month high, as mixed US data pressured the dollar and plunging cryptocurrencies boosted demand for alternative assets.

After hitting an 18-year high in December, homebuilder confidence fell in January, with labor shortages and rising materials costs weighing on the industry. Separately, industrial production rose in December, with capacity utilization moving toward pre-recession levels. Actual manufacturing output, however, edged up just 0.1%.

The dollar retreated 0.1% on the mixed data and reports from the Fed's Beige Book that the Republican tax plan is having muted effect on growth. A softer dollar boosts gold and other commodities by making them less expensive for users of other currencies.

Bitcoin fell below $10,000, bringing its month-long plunge to more than 50%, as regulatory concerns have put the brakes on skyrocketing cryptocurrencies. According to Bloomberg, traders who made quick fortunes in the new asset group are shifting into gold bullion as a more-stable alternative currency.

The other precious metals were mostly higher, with platinum and palladium rising 0.6% and 2%, respectively, while outlier silver slipped 0.1%.

At the Comex close: February gold added $2.10, to $1,339.20; March silver slipped 2 cents to 17.17; April platinum rose $6 to $1,010.90; and March palladium jumped $21.55 to $1,109.70 an ounce.


1/16/2018: Gold gains on falling dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.2% to close above $1,337, holding most of yesterday's rise in electronic trading during the MLK holiday closure of Comex. The metal then pushed as high as $1,345 in after-hours trading as the dollar resumed its slide, supporting demand for alternative stores of value.

The dollar retreated for its fourth straight losing session, dropping 0.1% against major rivals as expectations for tighter monetary policy from the ECB boosted the euro. A falling dollar supports gold and other commodities by making them less expensive for users of other currencies.

Adding to pressure on the buck, the Empire State manufacturing survey fell in January for its third straight monthly decline as new orders and shipments fell.

The other precious metals were mostly higher, with silver and platinum adding 0.3% and 0.9%, respectively, while palladium slid 1.6%.

At the Come close: February gold gained $2.20 to $1,337.10; March silver added 5 cents, to $17.19; April platinum climbed $8.70 to $1,004.90; and March palladium slid $17.20 to $1,088.15 an ounce.


1/15/2018: Gold rises again to 4-month high

Source: Bill Musgrave, American Gold Exchange

Austin — Extending last week's 1% rise, gold gained 0.5% in electronic trading to hit a four-month high above $1,341 as the dollar plummeted and oil rose, boosting demand for alternative stores of value.

The dollar fell another 0.6%, hitting a three-year low against major rivals, as economic optimism in the Eurozone and Japan drove expectations of monetary tightening by their central banks, reducing the relative attractiveness of the buck to currency traders.

The European Central Bank voiced a hawkish turn in last week's release of minutes from its latest meeting, signaling reductions in quantitative easing because of rising GDP and inflation, and driving the euro to a three-year high. Bank of Japan Governor Haruhiko Kuroda offered a similar view of Japan's outlook, driving the yen to a four-month high.

While the Fed is expected to continue gradual rates hikes in 2018, the rate differential between the US and other major economies is expected to equalize, pulling more foreign exchange investment toward the euro and yen at the expense of the dollar. A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive overseas.

Oil rose 0.8% to push above $70 per barrel on signs that decreased production by OPEC and Russia is tightening global supplies. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver surging 1.4% while platinum and palladium rose 0.9% and 1.2%, respectively.

In electronic trade: February gold gained $6.20 to $1,341.10; March silver for surged 23 cents to $17.38; April platinum added $9, to $1,005.20; and March palladium rose $12.95 to $1,118.30 an ounce.


1/12/2018: Gold rallies for fourth week

Source: Bill Musgrave, American Gold Exchange

Austin — Gold jumped 0.9% to close just under $1,335, its highest finish since early September, as a surging euro pressured the dollar, boosting demand for alternative stores of value. The metal rose 1% this week for its fourth consecutive weekly win.

The euro rallied to a three-year high against the dollar after Germany reached a tentative agreement for a coalition government between Chancellor Angela Merkel's conservative party and left-centrist rivals. The breakthrough would do much to settle political uncertainty in the Eurozone's largest and most vibrant economy.

The dollar plunged nearly 1%, pressured by the rising euro and expectations that the ECB will tighten monetary policy in 2018. In addition, the British pound jumped to its highest level since last summer's Brexit vote on reports that Holland and Spain want a softer split between the UK and the EU. The buck closed the week down nearly 1% for its fourth straight weekly loss.

Consumer inflation rose 0.1% in December, with most of the increase coming from higher housing costs. But core inflation, more closely watched by the Fed, rose 0.3%. Stripping out volatile food and energy costs, core inflation increased to 1.8% for the year but remains under the Fed's 2% target.

The other precious metals were higher for the day and mixed for the week. Silver gained 1% today but still lost 0.8% this week. Platinum added 0.6% for a weekly rise of 2%. Palladium added 2.7% today and 2% this week.

At the Comex close: February gold jumped $12.40 to $1,334.90; March silver climbed 18 cents to $17.14; April platinum added$5.40, to $996.20; and March palladium surged $29.10 to $1,105.35 an ounce, a new record.


1/11/2018: Gold rises with oil as dollar drops

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.2% to close at a 17-week high of $1,322.50 as oil rallied and the dollar fell, boosting demand for alternative stores of value.

Oil surged 1.5% to a three-year high above $64.60, supported by reductions in US production and steady declines in domestic stockpiles. Rising geopolitical risk in the Middle East, pipeline disruptions in Libya, and OPEC's agreement to extend production cuts have also contributed to bullish sentiment. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar fell another 0.5% against major rivals after minutes from the last European Central Bank meeting revealed that monetary easing may be further reduced because of rising inflation in the Eurozone.

Also weighing on the buck, the producer price index fell 0.1% in December, with prices for wholesale goods unchanged and service prices 0.2% lower. The core PPI, which strips out volatile food and energy prices, rose 0.1%. For the year, wholesale inflation was 2.6%, the strongest in in six years.

The other precious metals were mixed, with platinum adding 1.2% while silver and palladium slid 0.4% and 0.1%, respectively.

At the Comex close: February gold gained $3.20 to $1,322.50; March silver slid 7 cents to $16.97; April platinum climbed $12 to $990.80; and March palladium dipped $1.15 to $1,076.25 an ounce.


1/10/2018: Gold rallies on weaker dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.4% to close above $1,319 as the dollar receded on Japan's intention to reduce monetary easing, and reports that China may discontinue buying US Treasury bonds. The metal hit an intraday high above $1,328, nearly a four-month high, before pulling back on profit-taking.

Bloomberg reported that China, the biggest holder of US debt, may stop adding US Treasurys to its foreign reserves because of perceived weakness in the dollar and trade tensions with the US. At $3.1 trillion, China's currency reserves are the largest in the world. As the global recovery gathers steam and the central banks of Eurozone and Japan begin to tighten monetary policies, their government bonds become more attractive.

The dollar fell 0.3% on the news as Treasury prices fell. As if on cue, the yen jumped 1% against the dollar as the Bank of Japan said it plans to taper easing. A weaker dollar supports gold and other commodities by making them less expensive to holders of other currencies.

The buck was also pressured by data showing import prices rose by just 0.1% in December, the least in five months, amid falling prices for food and consumer items. Low inflation has been a stubborn impediment to the Fed's goal of to normalizing monetary policy.

Chicago Federal Reserve Bank President Charles today added his voice to the public debate among Fed members over the course of rate hikes. Like Neil Kashkari of the Minneapolis Fed and Raphael Bostic of Atlanta, both of whom spoke earlier this week, Evans wants to slow the pace of hikes until inflation rises toward the Fed's 2% target. Conversely, Loretta Mester of Cleveland and John Williams of San Francisco are calling for three or four hikes this year in order prevent rapid inflation spikes and unstable financial markets.

The other precious metals were mostly higher, with silver and platinum rising 0.2% and 0.7%, respectively, while palladium dropped 1.9%.

At the Comex close: February gold gained $5.60 to $1,319.30; March silver added 3 cents, to $17.04; April platinum rose $6.50 to $978.80; and March palladium lost $20.75 to $1,077.40 an ounce.


1/9/2018: Gold falls 0.5% on rising stocks, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 0.5% to close under $1,314 as stocks and the dollar gathered strength, dulling appetite for alternative assets.

US equity indexes added to record highs, with the Dow rising 0.5% while the S&P 500, notching its six-straight winning session, picked up another 0.3%. Traders speculate that rising growth and lower corporate taxes will further boost share prices this year.

The dollar added 0.3% against major rivals but slipped against the yen after the bank of Japan announced that it will reduce its purchases of long-dated government bonds. Stronger dollar weighs on gold and other commodities by making them more expansive for users of other currencies.

Minneapolis Fed President Neel Kashkari said today that low inflation and weak wage growth suggest that interest rates should remain low for longer than the Fed's three projected hikes for this year would allow. Yesterday, Atlanta Fed President Raphael Bostic made similar points, advocating just two rate hikes in 2018. Both statements were effectively pushback against comments by hawkish Fed members Loretta Mester of Cleveland and John Williams of San Francisco, who made speeches in recent days calling for three or four hikes this year.

The other precious metals were mostly lower, with silver and platinum dropping 0.8% and 0.4%, respectively, while outlier palladium picked up 0.2%.

At the Comex close: February gold fell $6.70 to 1,313.70; March silver for delivery lost 13 cents to $17.01; April platinum slid $ 4.10 to 972.30; and March palladium picked up $2.25 to $1,098.15 an ounce.

  

Metal Ask      Change
Gold $1,337.32           $4.53
Silver $17.09           $0.02
Platinum $1,000.33           $-16.70
Palladium $1,109.60           $-6.75