Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to surpass the key $1,300 mark, closing at $1,304.70 after weak consumer inflation pressured the dollar and raised questions about another rate hike from the Fed this year. The metal finished the week 2.3% higher. Silver added 0.8% today for a weekly rise of 3.7%.

The Consumer Price Index rose 0.5% in September, its biggest jump in eight months, behind a hurricane-related upsurge in gasoline prices. But the core CPI, which strips out food and energy, rose a meager 0.1%. Annualized core inflation, the measure most tracked by the Fed, was 1.7% for the fifth straight month and remained well-short of the Fed's 2% target.

The dollar fell immediately after the CPI report as traders speculated that the Fed may be less inclined to raise interest rates. The minutes from the September Fed meeting, released this week, showed increasing debate over whether to hike again with inflation stuck so far under target. The buck retraced most of its losses late in the session after President Trump decertified the nuclear agreement with Iran.

Fed Governor Lael Brainard admitted today that the central bank is struggling to understand the causes of persistently low inflation, saying that the decline is probably not the result of temporary or global factors.

Other consumer reports today were more positive but did little to move the markets. Retail sales rose 1.6% for its biggest gain in 30 months in September, and consumer sentiment surged to a 13-year high in October. The Dow and S&P 500 both edged up around 0.1%.

The other precious metals were also higher for the day and week. Platinum added 0.7% for a weekly rise of 3.4%. Palladium rose 1.2% today and 7.2% this week, its biggest weekly win since January.

At the Comex close: December gold gained $8.10 to $1,304.60; December silver climber 15 cents to $17.41; January platinum climber $6.10 to $947.90; and December palladium jumped $10.80 to $985.50 an ounce.