Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 1.1% to close near $1,191 as a sharp spike in oil prices and a roll-back in equities and the dollar boosted demand for alternative stores of value.

Oil surge as much as 2%, rising off early-session losses, as traders swung from pessimism to optimism about the chances for an OPEC agreement to curb production after members said they would salvage the deal.

Crude had fallen around 4% on Friday, pulling gold 0.9% lower, when Saudi Arabia said it would not attend meetings with Russia until OPEC decided on production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Stocks pulled back from the Trump-inspired rally that pushed the Dow and S&P 500 to record highs last week. Campaign promises of deregulation, tax cuts, and infrastructure spending have triggered speculation that corporate profits will rise during a Trump presidency.

The dollar declined slightly against a basket of rivals and lost around 1% against the safe-haven yen as traders took a pause from risk appetite. Treasury prices also rose alongside gold and the yen on safe-haven inflows.

Physical gold demand jumped in China, the world's largest gold consumer, pushing premiums to a three-year high, on expectations that the government will limit gold importers in order to control recent outflows of the yuan.

The other precious metals also rose, with silver adding 0.7% while platinum and palladium picked up 1.7% and 2%, respectively.

At the Comex close: December gold gained $12.40 to $1,190.80; March silver added 12 cents, to $16.68; January platinum climbed $15 to $923.30; and March palladium rose $15.10 to $758 an ounce.