Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.7% to close at $1,280.50 as the dollar jumped on improving prospects for tax reform, reducing demand for alternative stores of value. The metal dropped 1.9% for the week.

The Senate narrowly approved a blueprint for next year's budget, clearing a major hurdle for the passage of President Trump's proposed tax cuts. The vote was crucial because it will enable the Senate to pass forthcoming tax legislation with a simple majority though a budgetary procedure known as reconciliation, preventing a filibuster by Democrats. The budget allows tax cuts to add $1.5 trillion to the federal deficit over the next decade.

The dollar jumped 0.5% on optimism about the eventual tax overhaul, which is expected to boost inflation by stimulating the economy. Rising inflation is likely to result in higher interest rates, which support the dollar by attracting foreign exchange investment seeking higher yield.

Risk appetite was rekindled by the news, driving the Dow and S&P 500 higher by around 0.7% and 0.5%, respectively. As it stands, the Trump plan calls for dramatically lower corporate taxes, which will boost profits and share prices.

The other precious metals were mixed on the day but down for the week. Silver dropped 1% for a weekly loss of 1.9%. Platinum edged up 0.1% today but fell 2.2% this week. Palladium jumped 1.8% today but still lost 1.6% this week.

At the Comex close: December gold for delivery fell $9.50 to $1,280.50; December silver dropped 18 cents to $17.08; January platinum picked up $1.30 to $926.80; and December palladium rose $17.05 to $969.85 an ounce.