Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained for the sixth time in seven sessions, adding 0.3% to close above $1,165 as the dollar retreated and oil gained, increasing demand for alternative stores of value. The metal then held those gains as the dollar fell further after the release of minutes from the December meeting of the FOMC.

The dollar pulled back from a 14-year high against major rivals and extended its losses to 0.5% after the Fed minutes showed some conflict among committee members about the pace of rate hikes in 2017. A weaker dollar supports gold and other commodities denominated in it for international trade by making them less expensive overseas.

Although it acknowledged that Donald Trump's promises to boost spending on infrastructure while slashing taxes and regulations may spur growth and inflation, thereby changing the path of future hikes, the Fed maintained its position that the pace will be "gradual." Fed futures markets have priced in three 2017 hikes, with the dollar rising accordingly, whereas the Fed itself has signaled only two.

Oil prices rose around 0.5%, with Brent crude rising to $55.75 per barrel, on expectations that U.S. inventories have fallen more and the world's top producers will abide by their November agreement to cut production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals also gained with silver picking up 0.9% while platinum and palladium added 0.3% and 4.1%, respectively.

At the Comex close: February gold for gained $3.30 to $1,165.20; March silver added 14 cents to $16.55; April platinum picked up $3, to $947.20; and March palladium climbed $28.90 to $736.50 an ounce.