AGE Daily Gold Update

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

1/16/2019: Gold gains on Brexit turmoil

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.4% to close near $1,294 as Brexit turmoil and rising oil prices boosted demand for alternative assets.

The British Parliament overwhelmingly rejected PM Theresa May's plan for Brexit yesterday, throwing the future of UK-EU trade into chaos. Losing by 230 votes, May's long-negotiated agreement suffered a historic defeat, one that potentially places her government in jeopardy.

Meanwhile, the US government shutdown is beginning to take its toll on investor confidence and the economic outlook. The White House has doubled its projections of how much GDP will be reduced by the closures, now into the 26th day.

The Fed's Beige Book reported "many" of its districts have become less optimistic about the economy, citing political uncertainty, trade conflicts, rising interest rates, and rising volatility in financial markets. Eight of the 12 district reported modest to moderate growth; two were flat and two more reported slower growth.

Wall Street pushed higher, with major indexes hitting one-month highs on strong earnings from major banks like Goldman Sachs and Bank of America. The Dow picked up 0.6% while the S&P 500 and Nasdaq added around 0.2%.

Oil rallied 0.5% to close above $52 per barrel after the government reported that US crude supplies fell for the second week. Gold often trade in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver adding 0.1% while platinum and palladium rose 1% and 3.2%, respectively.

At the Comex close: February gold for delivery gained $5.40 to $1,293.80; March silver added 2 cents, cents, to $15.64; April platinum climbed $7.80 to $807.90; and March palladium jumped $41.40 to $1,318.50 an ounce for its eighth record finish in nine sessions.