Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged slightly higher, adding less than 0.1% to close at $1,231, as geopolitical tensions continued to buoy safe-haven demand despite a sharp rally in US equities.

Italy's contentious budget showdown with the EU, the ongoing trade war between the US and China, and the erosion of support for UK PM Theresa May's Brexit plan kept global turmoil simmering for another day, pushing gold prices to new multi-month highs.

The developing crisis between Saudi Arabia and the US over a murdered journalist also raised the temperature. Responding to accusations about its role in the death of Washington Post columnist Jamal Khashogg, who had written critically of the new crown prince, the world's largest oil producer made a veiled threat to undermine the global economy if sanctioned, effectively weaponizing its oil output.

Gold's gains were limited by a sharp rally in US equities, driven by strong earnings reports from several blue-chip firms. The Dow and S&P 500 gained around 2.2% while Nasdaq surged 3%. The dollar traded virtually flat.

Upbeat US data also stoked risk appetite after the Fed reported industrial production rose a solid 0.3% in September. Separately, home-builder confidence edged higher as strong demand offset worries about the effects of tariffs on the price of building materials.

The other precious metals were mostly higher, with palladium and platinum adding 0.4% and less than 0.1%, respectively, while outlier silver slipped 0.2%.

At the Comex close: December gold picked up 70 cents to $1,231; December silver futures dipped 3 cents to $14.70; January platinum added 40 cents, to $846.70; and December palladium climbed $4.30 to $1,073.90 an ounce.