Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold climbed 0.6% to close near $1,496 as renewed Brexit worries and surging oil prices stoked demand for alternative stores of value.

Following Parliament's vote earlier this week to slow his rushed timetable for Brexit, British PM Boris Johnson was forced to request a three-month extension on the October 31 deadline for departing the European Union.

While the EU is expected to grant an extension, a shorter one may be demanded by frustrated nations like France, further complicating an already tenuous process. The turn pushed investors toward safe havens to hedge against the impact of further Brexit confusion on global growth.

Sharply higher oil prices further lifted demand for gold. WTI crude jumped more than 3% on a surprise drawdown in U.S. oil reserves and indications that OPEC and its allies may deepen promised production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Expectations that the Fed will cut interest rates by another quarter-point when the FOMC meets next week also supported gold demand. CME FedWatch increased the odds to nearly 95%, based on Fed funds trading, up from 90% a week ago and 56% a month ago. Lower rates weaken the dollar, boosting gold by making it less expensive in other currencies.

The other precious metals were mostly higher, with silver and platinum risng 0.5% and 3%, respectively, while palladium slid 0.8%.

At the Comex close: December gold gained $8.20 to $1,495.70; December silver picked up 8 cents to $17.58; January platinum jumped $26.40 to $922.40; and December palladium dropped $13.90 to $1,714.60 an ounce.