Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.3% to close at a one-week high above $1,353 as surging oil prices, flat stocks, and a soft Beige Book report boosted demand for alternative stores of value.

West Texas crude surged more than 3% to $68.60, the highest level since late 2014, after the EIA said US crude supplies fell 1.1 million barrels last week. Further fueling the rally, Reuters reported Saudi Arabia wants to push prices toward $100 by cutting production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The Fed's Beige Book noted economic activity at a "modest to moderate pace" over the past month, unchanged from the previous report, with no escalation in wage growth. Most Fed regions expressed concern about the brewing trade war with China, and business owners were upset with rising prices because of tariffs on steel and aluminum.

The Dow dipped slightly into the red as risk appetite ebbed and traders rotated into commodities. The dollar ticked up 0.1% as weak inflation readings in the UK reduced the odds of higher rates from the Bank of England, punishing the pound.

The IMF reported global debt has reached a record high of $164 trillion, or 225% of global GDP. Three nations account for more than half the debt: China, Japan, and the US. Of the three, only the US is projecting an increase in debt-to-GDP ratio over the next five years.

The other precious metals were also higher, with silver jumping 2.8% to a 10-week high while platinum and palladium rose 0.6% and 3%, respectively.

At the Comex close: June gold gained $4 to $1,353.50; May silver jumped 46 cents to $17.25; July platinum picked up $5.80 to $945.80; and June palladium jumped $29.95 to $1,034.95 an ounce.