Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.9% to close just under $1,335, its highest finish since early September, as a surging euro pressured the dollar, boosting demand for alternative stores of value. The metal rose 1% this week for its fourth consecutive weekly win.

The euro rallied to a three-year high against the dollar after Germany reached a tentative agreement for a coalition government between Chancellor Angela Merkel's conservative party and left-centrist rivals. The breakthrough would do much to settle political uncertainty in the Eurozone's largest and most vibrant economy.

The dollar plunged nearly 1%, pressured by the rising euro and expectations that the ECB will tighten monetary policy in 2018. In addition, the British pound jumped to its highest level since last summer's Brexit vote on reports that Holland and Spain want a softer split between the UK and the EU. The buck closed the week down nearly 1% for its fourth straight weekly loss.

Consumer inflation rose 0.1% in December, with most of the increase coming from higher housing costs. But core inflation, more closely watched by the Fed, rose 0.3%. Stripping out volatile food and energy costs, core inflation increased to 1.8% for the year but remains under the Fed's 2% target.

The other precious metals were higher for the day and mixed for the week. Silver gained 1% today but still lost 0.8% this week. Platinum added 0.6% for a weekly rise of 2%. Palladium added 2.7% today and 2% this week.

At the Comex close: February gold jumped $12.40 to $1,334.90; March silver climbed 18 cents to $17.14; April platinum added$5.40, to $996.20; and March palladium surged $29.10 to $1,105.35 an ounce, a new record.