Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold rose 0.3% to close at a 9-week high of $1,294 as weak U.S. inflation combined with ongoing geopolitical risk to drive investors into alternative assets. The metal gained 2.3% on the week for its biggest weekly increase since April.

Consumer prices were soft in July, with the CPI rising just 0.1% for an annualized rate of 1.7%. The low reading marked five straight months of weak inflation and raised new questions about whether the Fed will realize its 2% target.

The dollar rolled back 0.4% against major rivals as traders speculated that weak inflation will prevent the Fed from raising interest rates later this year. Higher rates would boost the buck by attracting foreign exchange investment searching for higher yields. A softer dollar supports gold and other commodities priced in it for international trade by making them less expensive overseas.

Tensions remained high between North Korea and the US after President Trump upped the ante by tweeting that "military solutions are now fully in place, locked and loaded." In recent days, Trump has signaled the possible use of nuclear weapons to prevent aggression from the rogue nation against Guam.

Treasury yields slipped again, extending losses to five days, as geopolitical concerns push investors into safe-haven assets. The VIX volatility index, widely known as Wall Street's fear gauge, posted its biggest weekly surge in two years.

The other precious metals were mixed. Silver traded nearly flat, edging barely higher to gain around 5% this week. Platinum added 0.4% for a weekly rise of 2.1%. Palladium slipped 0.3% today but climbed 2.3% on the week

At the Comex close: December gold gained $3.90 to $1,294; September silver added a half-cent, at $17.07; October platinum rose $3.80 to $989.70; and September palladium dipped $2.35 to $894.70 an ounce.