Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat, inching down 60 cents to close just over $1,314, as the impact of rising oil prices was offset by a stronger dollar to leave demand little changed.

Crude oil surged another 1.2% to close above $70.50 per barrel, the highest level since November 2014, as OPEC production cuts and pending Iran sanctions combined to curb supplies. Tumbling Venezuelan output, which has fallen to a 30-year low because of its declining economy, also bid up prices. Often trading in sympathy with oil as a hedge against energy-related inflation, gold received support from oil's impressive rise.

However, the rising inflation-expectations that accompany expensive energy also boosted the dollar, which added 0.2% to hit a four-month high, as traders speculated that the Fed may be moved to accelerate rate hikes. Higher interest rates typically support the dollar by attracting foreign exchange investment seeking higher yields, in turn weighing on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals were mixed, with silver slipping 0.2% while platinum and palladium picked up 0.3% and 0.5%, respectively.

At the Comex close: June gold dipped 60 cents to $1,314.10; July silver slipped 2 cents to $16.50; July platinum adder $3, to $913.30; and June palladium picked up $4.85 to $962.10 an ounce.