Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained for a third day, adding 0.2% to close at $1,230, as rising oil prices and geopolitical tensions boosted demand for alternative assets.

Oil jumped 2% to a three-week high above $52 per barrel after Russia and Saudi Arabia pushed to extend production cuts until March 2018. The current OPEC agreement calls for reducing production until September of this year to stabilize the market and support prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

North Korea claimed to have successfully tested a new ballistic missile with a range of more than 1,300 miles yesterday. If confirmed, it would potentially place the U.S. military base on Guam within range of a nuclear warhead. The test ratcheted up already-high tensions between the rogue nation and the Trump administration, lending safe-haven support to gold.

The Empire State manufacturing index fell to its first negative reading since the election, with new orders at the lowest level in a year. The subpar data follows disappointing reports on consumer inflation and retail sales on Friday.

The dollar slipped 0.3% against major rivals, extending Friday's losses as downbeat economic data weighed on sentiment about a June rate hike. Rising oil also pressured the buck against commodity currencies. A falling dollar supports gold and other commodities denominated in iti for international trade by making them more expensive overseas.

The other precious metals were mostly higher, with silver and platinum jumping 1.2% each while palladium slid 0.8%.

At the Comex close: June gold for gained $2.30 to $1,230; July silver climbed 20 cents to $16.60; July platinum rose $11.20 to $928.70; and June palladium slid $6.50 to $797 an ounce.