Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.7% to close above $1,210 as rising inflation, a falling dollar, and rebounding oil stoked appetite for alternative stores of value.

The Consumer Price Index rose 0.3% in October, its biggest increase in nine months, on higher costs for gasoline, used cars, and rent. The so-called core CPI, stripping out food and energy prices, rose 0.2%. Real average wages, or income adjusted for inflation, fell 0.1% last month for an anemic 0.7% year-over-year increase.

The dollar slid against major rivals as upbeat Brexit news rallied the UK pound and euro. After months of contentious negotiations, British PM Theresa May announced that she has cabinet approval for a trade deal, setting the stage for an orderly departure from the EU. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive overseas.

After 12 straight losing sessions, oil rebounded 2% on reports that OPEC and its partners will sharply cut production. US-imposed sanctions against buying Iranian oil had prompted producers to increase output. Recently, though, the White House granted exemptions to eight major oil-consuming nations, effectively returning Iran's oil to the market and creating an unexpected glut, driving down prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with silver and palladium adding 0.7% and 1.7%, respectively, while platinum slipped 0.9%.

At the Comex close: December gold jumped $8.70 to $1,210.10; December silver rose on 10 cents to $14.08; January platinum slid $7.50 to $833.80; and December palladium gained $18.10 to $1,110.20 an ounce.