Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.4% to close just under $1,076 as the continuing sell-off in oil weakened equities and the dollar, boosting demand for safe-haven assets. The metal still finished the week 0.8% lower on expectations that the Fed will raise rates at its December meeting.

Oil plunged under $36 per barrel to finish its worst week of the year with an 11% loss. Slower global growth and overproduction by OPEC have created a supply glut causing crude to lose one-third of its value this year and half since June 2014.

U.S. stock indexes tumbled in response to falling crude prices, with the Dow and S&P 500 both losing 1.7%, while Treasury bonds surged along with gold, climbing to a one-month high as investors fled to safety.

The dollar receded as traders speculated that oil's freefall may slow the pace of rate hikes in 2016. A falling dollar supports gold and other commodities by making them less expensive overseas.

The markets largely ignored data showing that U.S. producer prices rose by 0.3% last month, the most since June. The higher wholesale inflation numbers support a rate hike by the Fed next week, which is largely priced-in already.

The other precious metals were mixed on the day but down for the week. Silver dropped 1.6% today and 4.4% this week. Platinum fell 1.4% on the day and 4.2% on the week. Palladium added 0.5% today but still lost 3.9% this week.

At the Comex close: February gold gained $3.70 to $1,075.70; March silver dropped 23 cents to $13.88; January platinum lost $12.20 to $843.70; March palladium picked up $2.55, to $544.80 an ounce.