Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.8% to close at a one-year high above $1,350 as the dollar weakened further, boosting demand for alternative stores of value. The metal has now risen nearly 4% in the past two weeks, supported by a softening US rate outlook and rising geopolitical tension.

The dollar fell 0.6% against major rivals, led a strong drop against the euro after data showed the eurozone economy growing at an annualized rate of 2.6%, beating expectations. At the close of the ECB's meeting on policy today, Mario Draghi voiced optimism about continued growth while holding rates unchanged.

The buck was further weakened by jobs data showing new claims for unemployment benefits rose by the most in five years, largely because of Hurricane Harvey. A falling dollar supports gold and other commodities priced in it for international trade by making them less expensive in other currencies.

Uneven US economic performance and persistently low inflation have dropped the odds of another rate hike from the Fed. CME FedWatch says the probability of a hike by December is just 31%, down from 37% yesterday and 43% a month ago. Low rates weigh on the dollar by making it less attractive to traders seeking higher yields.

Gold continued to receive safe-haven bids because of high tension with North Korea over its recent tests of ICBMs and a hydrogen bomb. Saber-rattling between Washington and Pyongyang has driven Wall Street volatility higher by more than 30% this week, according to the VIX volatility index.

The other precious metals also rose, with silver jumping 1.2% while platinum and palladium gained 1% and 1.8%, respectively.

At the Comex close: December gold for delivery gained $11.30 to $1,350.30; December silver jumped 21 cents to $18.12; October platinum added $9.70, to $1,016.80; and December palladium climbed $16.95 to $948.85.