Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,302 as a falling dollar and rising oil boosted demand for alternative stores of value.

Reports that the European Central Bank will use its next meeting to discuss its exit from quantitative easing helped to rally the euro, pushing the dollar 0.2% lower against major rivals. Also buoying the euro was yesterday's successful formation of a new government in Italy, easing recent worries about political instability. A weaker dollar supports gold and other commodities denominated in it for global trade by making them less expensive in other currencies.

West Texas Intermediate Crude rebounded around 1.2% as traders speculated that recent concerns that OPEC would revise production caps were overblown. OPEC and other major suppliers have been working to reduce global supplies by almost 2% since 2016 to shore up prices. But recent turmoil in Iran and Venezuela triggered speculation that the cartel would increase production. Oil fell for three sessions as a result, including a loss of 1.4% yesterday. Gold usually trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed, with silver rising 0.7% while platinum and palladium fell 0.2% and 0.9%, respectively.

At the Comex close: August gold gained $4.90 to $1,302.20; July silver rose 11 cents to $16.54; July platinum edged down $2.20 to $901.30; and September palladium fell $8.60 to $985.70 an ounce.