Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained for a fifth session, adding 0.3% to close at a 12-week high near $1,240, as political jitters continued to spur demand for safe havens.

Political uncertainty surrounding upcoming elections in France pressured the euro and widened the spreads between French and German bond-yields to the most in more than four years. Yields on 10-year U.S. Treasurys fell by more than 1% as investors sought safety.

Marine Le Pen, leader of the far-right National Front, announced her run for President over the weekend. While still a relative longshot, Pen's anti-immigration candidacy has gained momentum recently, leading to concern about the future of the EU. She has said she'll pursue Frexit, or a French exit from the EU.

Worries about the policies of Donald Trump are also boosting flights to safety after a series of controversial statements and executive orders have led to confrontations with courts and Democratic lawmakers. Few details on economic policy have been revealed, leading traders to question whether his promise of $1 trillion in infrastructure spending will become reality.

The dollar slipped 0.1% against major rivals, supporting gold and other commodities denominated in it for international trade by making them less expensive in other currencies.

Gold was further supported by rising oil prices, which added 0.3% on an unexpected decline in U.S. gasoline inventories. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with platinum and palladium gaining 0.6% and 0.7%, respectively, while outlier silver slipped 0.3%.

At the Comex close: April gold gained $3.40 to $1,239.50; March silver slid 5 cents to $17.71; April platinum added $6.50, to $1,019.40; and March palladium climbed $5.30 to $769.75 an ounce.