Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained another 0.3% to close above $1,560 as easing global turmoil and upbeat data from China undercut the dollar and rallied oil prices, boosting demand for alternative stores of value. Silver surged another 1.3% to finish at $19.55.

China's services sector grew by the most in three months in August, helping to assuage fears of a global economic slowdown. Oil prices rallied sharply on the news, with West Texas Intermediate crude adding 4.3% on hopes of improved demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar fell 0.5% as the euro and UK pound rebounded after political developments improved the outlook for the Eurozone and Britain. Italy's 5-Star Movement entered a coalition with the Democratic Party for a new government, helping to settle fears of political chaos that could damage the weakened financial system. And British lawmakers have taken steps to prevent a no-deal Brexit that could severely damage the economies of the UK and Eurozone.

Gold's gains came despite a strong rise in risk appetite. The Dow jumped nearly 1% and the tech-heavy Nasdaq added 1.3% as the news from China and Europe stirred optimism in investors.

The other precious metals were also higher, with platinum rising 3% while palladium picked up 1.1%.

At the Comex close: December gold gained $4.50 to $1,560.40; December silver surged 31 cents to $19.55; October platinum rose $28.60 to $984.20; and December palladium added $16.90, to $1,552.10 an ounce.