Questions? Call 1-800-613-9323
Home > Gold > Daily Gold Update

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


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.


6/7/2018: Gold climbs as dollar slides

Source: Bill Musgrave, American Gold Exchange

Austin — Gold climbed 0.1% to close at a one-week high of $1,303 as a rising euro pressured the dollar, spurring demand for alternative stores of value.

The dollar declined 0.3% and the euro rallied as traders speculated that the European Central Bank will start to unwind monetary easing when it meets next week. Quantitative easing, the bond-buying program that stimulated the Eurozone in the aftermath of the 2008 financial crisis, is targeted to end in coming months.

At the same time, the ECB is expected to signal its intention to raise interest rates ahead of schedule, closing the euro's rate differential with the dollar. Both moves will support a stronger euro and pressure the dollar, in turn boosting gold and other commodities priced in dollars for global trade by making them less expensive overseas.

Also pressuring the dollar, the Group of 7 conference convenes today amid acrimony between the US and its major economic allies over Trump administration tariffs on steel and aluminum. A trade war, should it occur, would be a short-term drag on GDP and undermine the recent dollar rally.

Gold also received safe-haven bids after Brazilian stocks plunged 5% on strikes and other labor unrest. US Treasury notes also rallied on flights to quality, driving yields sharply lower.

The precious metals were mixed, with silver adding 0.7% while platinum and palladium fell 0.8% and 0.6%, respectively.

At the Comex close: August gold gained $1.60 to $1,303; July silver rose 13 cents to $16.82; July platinum dropped $7.30 to $900.30; and September palladium lost $5.60 to $1,009.60 an ounce.


6/6/2018: Gold dips slightly on trade data

Source: Bill Musgrave, American Gold Exchange

Austin — After gaining for most of the session, gold edged down at the end of trading to close under $1,302, losing less than 0.1% as the dollar recouped some earlier losses on solid export and trade data.

The US trade deficit fell to a seven-month low in April, the Commerce Department reported, as exports rose to a record $211 billion. Notably, the data is from before tariffs by the Trump administration took effect, prompting threats of retaliation by trading partners.

The upbeat data helped the dollar cuts its losses from around 0.4% to just 0.2%. The early weakness stemmed from reports that the ECB is likely to end quantitative easing when it meets later this month. Tantamount to printing money, QE flooded Europe with cheap euros to support the region's recovery from the 2008 financial crisis, boosting the buck. The end of the program will support the shared currency to the detriment of the dollar.

The greenback had also been pressured early by revised data showing first-quarter productivity growth was weaker than initially reported, at merely 0.4%. Higher productivity leads to greater profits and rising wages, potentially boosting inflation and prompting higher interest rates.

The other precious metals held onto gains, with silver rising 0.9% while platinum added 0.7% and palladium jumped 3%.

At the Comex close: August gold dipped 80 cents to $1,301.40; July silver rose 15 cents to $16.69; July platinum added $6.30 to $907.60; and September palladium jumped $29.50 to $1,015.20 an ounce.


6/5/2018: Gold regains $1,300 on oil, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.4% to close above $1,302 as a falling dollar and rising oil boosted demand for alternative stores of value.

Reports that the European Central Bank will use its next meeting to discuss its exit from quantitative easing helped to rally the euro, pushing the dollar 0.2% lower against major rivals. Also buoying the euro was yesterday's successful formation of a new government in Italy, easing recent worries about political instability. A weaker dollar supports gold and other commodities denominated in it for global trade by making them less expensive in other currencies.

West Texas Intermediate Crude rebounded around 1.2% as traders speculated that recent concerns that OPEC would revise production caps were overblown. OPEC and other major suppliers have been working to reduce global supplies by almost 2% since 2016 to shore up prices. But recent turmoil in Iran and Venezuela triggered speculation that the cartel would increase production. Oil fell for three sessions as a result, including a loss of 1.4% yesterday. Gold usually trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed, with silver rising 0.7% while platinum and palladium fell 0.2% and 0.9%, respectively.

At the Comex close: August gold gained $4.90 to $1,302.20; July silver rose 11 cents to $16.54; July platinum edged down $2.20 to $901.30; and September palladium fell $8.60 to $985.70 an ounce.

  

Metal Ask      Change
Gold $1,280.22           $0.79
Silver $16.44           $-0.11
Platinum $885.28           $-2.24
Palladium $992.75           $-4.52
In US Dollars