Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold inched up by less than 0.1% to close above $1,315 as rising oil prices overcame strength in stocks and the dollar to drive demand for alternative assets.

Crude jumped another 1.7% to surpass $54 per barrel, the highest level since November, after Saudi Arabia pledged to cut production by an additional 500,000 barrels per day beyond the reductions already agreed upon by OPEC. In addition, the IEA reported global supplies fell by 1.4 million barrels a day last month, supportng higher prices. Gold often trades in sympathy with oil as a hedge against higher energy costs.

President Trump said today that he may extend the March 1 deadline for a trade agreement with China if he feels a deal is close. If not, tariffs are set to rise from 10% to 25% on $200 billion in imported goods.

Wall Street and the dollar both extended their gains on the upbeat trade news. The Dow added 0.6% and the Global Dow 0.3%, while the dollar picked up 0.3% against major rivals. A stronger dollar pressures gold and other commodities by making them more expensive in other currencies.

Consumer inflation was flat in January, according the Consumer Price Index, and the cost of living dropped to an increase of 1.6% over the past 12 months, down from 1.9%. Flagging inflation has caused the Fed to signal that it will slow or pause rate hikes this year amid worries about slowing growth.

US national debt topped $22 trillion this week for the first time ever. According to the Peterson Foundation, our debt has risen $1 trillion over just the past 11 months, accelerated by tax cuts, and we now pay $1 billion every day in interest on it.

The other precious metals were mostly lower, with silver and palladium sliding 0.2% each while platinum added 0.3%.

At the Comex close: April gold rose $1.10 to $1,315.10; March silver slipped 4 cents to $15.65; April platinum rose $2.20 to $791.80; and March palladium dropped $2.80 to $1,372.60 an ounce.