Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1% to close at a three-week high above $1,246, as the dollar fell to a six-week low and equities tumbled, boosting demand for alternative stores of value. It was the metal's fourth straight winning session.

The euro rallied strongly against the dollar after centrist candidate Emmanuel Macron did better than expected in France's first televised presidential debate. His success is seen as blunting the momentum of far-right candidate Marine Le Pen, who has called for France to exit the euro.

The US dollar Index, which measures the buck against a basket of major rivals, fell 0.6% to give up almost all its gains since the U.S. presidential election in November. A falling dollar supports gold and other commodities prices in it for international trade by making them less expensive overseas.

Gold was further supported by safe-haven inflows as the Dow and S&P 500 both lost 1% on fears that Trump's promised tax cuts might not arrive as quickly as hoped, given the legislative slowdown associated with the repeal and replacement of the ACA.

After President Trump's election, the dollar and equities both soared on expectations that his promised tax cuts and $1 trillion stimulus package to rebuild infrastructure would stoke both growth and inflation. With that spending plan now on indefinite hold, tax cuts uncertain, real GDP growth at just 0.9% in Q1, and the Fed's dovish signal last week that future rate hikes will remain slow and moderate, the buck has lost much of its post-election support. After a series of record closes, stocks, too, are showing signs of weakness.

The other precious metals were mostly higher, with silver and palladium adding 0.8% each while platinum dipped 0.1%.

At the Comex close: April gold jumped $12.50 to $1,246.50; May silver rose 14 cents to $17.58; April platinum slipped $1 to $971.40; and June palladium added $6, to $787.65 an ounce.