Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold added 0.4% to close near $1,345, gaining for a third session as a weaker dollar and tensions in the Middle East fueled demand for alternative stores of value.

The US and Russia clashed at the UN over Syria's chemical-weapons attack after Russia vetoed a resolution to investigate it. The Trump administration and allies are considering a military response against the Assad government, ratcheting up tensions in the war-torn region.

The dollar fell 0.3% as the euro rallied after ECB governor Ewald Nowotny said the central bank will end quantitative easing. The buck was also pressured by easing concerns about a trade war with China after President Xi Zinping promised to open China's manufacturing and financial markets. A falling dollar supports gold and other commodities by making them less expansion overseas.

Gold's gains came despite another strong risk rally, with the Dow surging 400 points on the conciliatory remarks by China's president.

Accelerating wholesale inflation also underpinned gold demand as the producer price index rose 0.3% in March, pushing the 12-month rate over 3% for the first time in five months. Gold in traditionally used as a hedge against sharply rising inflation.

The other precious metals were mostly higher, with silver and palladium rising 0.4% and 1.9%, respectively, while platinum dropped 0.7%.

At the Comex close: June gold gained $5.80 to $1,345.90; May silver added 7 cents, to $16.60; July platinum slipped $6.30 to $933.10; and June palladium jumped $17.25 to $949.75 an ounce.