Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.1% to close just under $1,210 as oil prices surged and the dollar rolled back, boosting demand for alternative stores of value.

Oil soared around 4%to a three-week high after Vladimir Putin signaled a "high probability" that Russia will join OPEC in an agreement to curb production when they meet next week. Uncertainty over whether the major producers could forge a pact to support higher prices has been a major driver of oil's weakness in recent months. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

After ten-straight winning sessions, the dollar slipped 0.3% as traders took profits from the currency's 3.6% rise since the U.S. presidential election. Donald Trump's avowed intention to cut taxes, spend on massive infrastructure improvements, and raise tariffs on goods from China are considered to be highly inflationary, potentially driving the Fed toward faster and steeper interest rate increases. Higher rates boost the dollar by attracting forex investment in search of higher yield.

The buck also was pressured by data from the Chicago Fed showing that the national economy has weakened over the past three months, reducing inflationary pressure in the near term and limiting growth in the fourth quarter. While the trend is unlikely to derail a December hike from the Fed, it may retard the pace on additional hikes in 2017.

The other precious metals were mostly lower, with silver and palladium dropping 0.6% and 0.2%, respectively while platinum gained 1.6%.

At the Comex close: December gold rose $1.10 to $1,209.80; December silver slid 10 cents to $16.52; January platinum added $14.50, to $936.50; and December palladium dropped $1.25, to $726.55 an ounce.