Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gaining for a third session, gold added 0.4% to close at a one-month high above $1,258 as oil rallied and the dollar eased, boosting demand for alternative assets.

Crude prices climbed 1.8% to a one-month high on rising confidence that OPEC and other major producers will cut output. Lower U.S. inventories also lifted sentiment. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar eased against the safe-haven yen as traders hedged positions ahead of this weeks charged meeting between President Trump and Chinese Premier Xi Jinping. Trump has accused China of currency manipulation and unfair trade practices, lending an air of contention to the meeting.

Gold's gains were capped by an announcement that Trump will push for an infrastructure package valued at more the $1 trillion, as promised during the election. If passed by Congress, the stimulus is likely to boost inflation and possibly accelerate the pace of rate hikes from the Fed.

The other precious metals also finished higher, with silver picking up 0.6% while platinum and palladium rose 0.5% and 0.7%, respectively.

At the Comex close: June gold gained $4.40 to $1,258.40; May silver picked up 11. Cents to $18.32; June palladium climbed $4.40 to $806.95; and July platinum for delivery rose $6.30 to $964.50 an ounce.