Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Extending yesterday's 1.5% rally, gold added another 0.6% to close above $1,258, the highest finish since early November, as a changing rate view and concerns about geopolitics helped to boost safe-haven demand. The metal gained 1.6% for the week to notch its fourth straight weekly win.

This week's release of the minutes form the last Fed meeting showed a somewhat dovish attitude, leading traders to bet that the central bank will not raise interest rates as aggressively as expected. Members remained optimistic about the direction of the economy but cited "considerable uncertainty" over the impact of the Trump administration's fiscal policies as a possible headwind.

President Trump has promised to spend $1 trillion on infrastructure improvements while slashing personal and corporate income taxes.

Any delay in rate hikes is bullish for gold because higher rates tend to boost the dollar by attracting foreign exchange investment in search of higher yields. A rising dollar, in turn, often pressures gold and other commodities by making them more expense in other currencies.

Growing worries about upcoming elections in France, Germany, Holland, and Italy also boosted gold, as populist candidates have been gaining traction, possible putting the future of the Eurozone in question. Gold tends to rise during periods of political instability as investors seek safe havens.

Treasury yields dropped to five-week lows as prices rose on flights to safety. Also pressuring bond yields were comments from Treasury Secretary Steven Mnuchin that Trump's promised tax plan is unlikely to be ready before August, and therefore will have little economic effect in 2017.

The other precious metals were mixed for the day. Silver jumped 1.3% on the day and 1.7% on the week, posting its ninth straight weekly win. Platinum gained 1.7% while palladium fell 0.2%.

At the Comex close: April gold added $6.90, to $1,258.30; March silver climbed 22 cents to $18.34; April platinum rose $16.80 to $1,028.70; and June palladium fell $1.65 to $772.95 an ounce.