Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close above $1,294 despite falling oil and a slightly higher dollar as traders hedged against this week's Senate vote on tax reform.

Crude oil fell 1%, pulling back from a two-year high, on growing doubt that Russia will join OPEC this week in extending production cuts. After plunging to multi-year lows, oil prices have rallied in recent months behind reductions in output from the major oil nations, which are scheduled to expire. While OPEC has signaled its intention to extend those cuts into 2018, Russia has yet to agree to a timeline.

The dollar ticked up 0.1% against major rivals, rebounding from early-session losses, as the euro fell on ongoing worries about German politics. Optimism that the Social Democrat party might renew the coalition with Angela Merkel's faltering Christian Democrats faded somewhat over the weekend, renewing uncertainty about whether a snap election will be needed to end the stalemate in the Eurozone's biggest economy.

The buck was also helped by the Commerce Department's report that new-home sales rocketed 9% to a 10-year high in October. A rising dollar typically pressured gold and other commodities priced in it for global trade

Despite developments that would typically undermine it, gold received solid bids as investors remain concerned about tax reform. The Senate is expected to vote this week on its version of the tax plan. Opposition among Republicans, let alone Democrats, makes the outcome uncertain, and failure to pass would likely mean a risk-off environment for investors, boosting safe havens.

The other precious metals were also higher, with silver adding 0.2% while platinum and palladium rose 0.6% and 0.7%, respectively.

At the Comex close: December gold gained $7.10 to $1,294.40; December silver added 3 cents, to $17.02; January platinum climbed $5.50 to $950.80; and December palladium rose $8.65 to $1,001.05 an ounce.