Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5% to close at a one-week high near $1,139 on bargain-hunting and rising oil prices in light holiday trade.

Oil jumped 1.7% to nearly $54 per barrel, extending its rally on expectations last month's agreement among OPEC and major non-OPEC producers to limit supply will drive prices higher next year. Oil prices have risen around 25% since November's agreement. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Gold 's rise came despite a slightly higher dollar, which rose around 0.1% against major rivals. A stronger dollar typically weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies. But gold defied that headwind today as traders covered shorts and picked up bargains after last week's drop to a 10-month low.

President-elect Donald Trump's promise to rebuilding infrastructure and increase tariffs while slashing taxes has helped drive the dollar more than 5% higher to a 14-year high since the election. Seen as highly inflationary, the policies are expected to spur the Fed to accelerate the pace of rate hikes next year, which would boost the dollar by attracting foreign exchange investment is search of higher yield.

Some upbeat economic reports also buoyed the buck. Consumer confidence rose to its highest level since 2001 in November, per the Conference Board, and prices rose another 0.6% in October to notch a 5.1% increase over the previous 12 months.

The other precious metals also rose, with silver adding 1.5% while platinum and palladum picked up 1.3% and 3.3%, respectively.

At the Comex close: February gold gained $5.10 to $1,138.70; March silver added 24 cents, to $16; January platinum rose $11.20 to $904.40; and March palladium jumped $21.55 to $676.40 an ounce.