Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained for a fourth day, adding 0.4% to close a two-week high of just under $1,314, as rising consumer inflation and shrinking real wages boosted demand for alternative stores of value. The metal has risen 1.5% over the past four sessions.

The Consumer Price Index jumped 0.4% in March for its biggest increase in 14 months, led by sharply higher energy prices and rent. The average price of gasoline rose 10%. On a yearly basis, the cost of living rose by 1.9%, up from 1.5% in February. The so-called core measure, stripping out food and energy, slipped from 2.1% to 2% annually.

As if on cue, Brent crude oil futures rose 1.6% to more than $71.70 per barrel and gasoline futures jumped 3.5% to the highest finish in nearly six months. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Real average earnings, or wages adjusted for inflation, decreased by 0.3% in March. Over the past year, real earnings have risen 1.3%, well-under the cost of living increase.

The other precious metals were higher, with silver and platinum rising 0.2% and 1.1% while palladium added less than 0.1%.

A the Comex close: June gold gained $5.60 to $1,313.90; May silver rose 3 cents to $15.24; July platinum rose $9.60 to $908.90; and June palladium added 60 cents to $1,363.20 an ounce.