Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose for an eighth session, adding 0.5% to close above $1,310, as the dollar continued to sink on expectations of rising global inflation, boosting demand for alternative stores of value. The metal has jumped $70 in the past two weeks on sustained dollar-weakness and rising oil prices.

PMI data from major economies including China, Germany, France, and the UK all point accelerating factory output in 2018 as the rest of the world catches up to the US in recovering from the Great Recession. The composite global PMI compiled by Morgan Stanley reached its highest in seven years, according to Bloomberg.

With factories nearing capacity, rising growth is expected to drive higher inflation this year, prompting more central banks to reduce monetary easing and raise interest rates. As the rate-differential between the US other nations diminishes, the dollar may be less attractive to foreign exchange traders seeking higher yield.

The dollar fell for a fifth day to another three-month low, dropping another 0.4% against major rivals to extend its 10% loss in 2017. A weak dollar lifts prices for gold and other commodities by making them less expensive for users of other currencies.

Gold continues to be supported by high oil prices, which edged down slightly today but held at a 30-month high above $60 as traders eyed deepening turmoil in Iran, a major producer.

The other precious metals were also higher, with silver rising 0.4% while platinum and palladium gained 1% and 2.5%, respectively.

At the Comex close: February gold gained $6.80 to $1,316.10; March silver picked up to 6 cents to $17.21; April platinum rose $9.50 to $947.80; and March palladium jumped $26.35 to $1,087.35 an ounce