Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold soared 1.4% to close at two-month near $1,213 as the dollar plunged in response to comments by Donald Trump, boosting demand for alternative stores of value.

President-elect Trump said explicitly that the dollar has become "too strong," especially in relation to the yuan, and is undercutting U.S. exports. "Our companies can't compete," Trump told the Wall Street Journal, "and it's killing us."

The dollar fell 1.2% against major rivals as traders speculated that the new President may pursue a weaker dollar. Gold and other commodities are typically boosted by a weaker dollar because they become less expensive to users of other currencies.

A sharp rise in the UK pound also pressured the buck after PM Theresa May said she would put the terms of Brexit to a Parliamentary vote. Unease over Brexit has rattled stock and currency markets in recent sessions, contributing to safe-haven demand for gold.

After rallying 4% to a 14-year high in the wake of the election, the buck has now surrendered half those gains in the past two weeks. Gold has gained around 5.5% so far in 2017, handily outperforming the Dow and S&P 500, which have risen just 0.4% and 1.4%, respectively.

The other precious metals were mostly higher, with silver and palladium adding 2.3% and 0.5%, respectively, while platinum slipped 0.3%.

At the Comex close: February gold soared $16.70 to $1,212.90; March silver jumped 38 cents to $17.15; April platinum slipped $3.30 to $983.10; and March palladium picked up $3.85, to $753 an ounce.