Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 0.2% to close at $1,224.50 as surging oil prices and falling bond yields boosted demand for alternative assets, bringing bargain-hunters back into the market.

Oil jumped nearly 6%, rising from an eight-month low to regain $45 per barrel, on the belief that OPEC will vote to curtail production when it meets on November 30. In addition, the Energy Information Administration is forecasting that production from U.S. shale will drop by 20,000 barrels per day next month. Gold often trades in sympathy with oil as a hedge against energy- related inflation.

Treasury yields fell back after rising to a one-year high in the aftermath of the U.S. presidential election as uncertainty over Trump's policies returned. Treasury yields move inversely to bond prices, which often climb along with gold on flights to safety.

Global bond markets lost more than $1 trillion in the past week on speculation that Trump's promises of massive tax cuts and huge stimulus spending on infrastructure would boost U.S. inflation, triggering more aggressive rate hikes from the Fed.

The other precious metals also rose, with silver adding 0.9% while platinum and palladium picked up 0.1% and 1.2%, respectively,

At the Comex close: December gold gained $2.80 to $1,224.50; December silver added 15 cents to $17.04; January platinum picked up $1.10 to $934.70; and December climbed $8.25 to $705.95 an ounce.