Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 0.6% to close at a two-week high of $1,228 as rebounding oil and a weaker dollar boosted demand for alternative stores of value.

US oil futures jumped 2.3% to $54.60 per barrel after government data showed a pick-up in demand. In addition, OPEC and non-OPEC suppliers like Russia are reportedly weighing production cuts to reduce the global supply glut that has driven prices down 30% from the recent peak in early October. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar edged down 0.2% against major rivals, shedding some of yesterday's gains. The euro pushed higher despite uncertainty about Italy's fiscal policy after the EC rejected its 2019 budget proposal for a second time. A weaker dollar typically supports gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were also higher, with silver jumping 1.6% while platinum and palladium rose 0.4% and 0.6%, respectively.

At the Comex close: December gold gained $6.80 to $1,228; December silver jumped 23 cents to $14.50; January platinum picked up $3.60 to $850.60; and December palladium added $7.10, to $1,133.20 an ounce.