Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.7% to close above $1,230, a two-month high, as geopolitical turmoil in Europe and the Middle East pressured the dollar and boosted demand for safe-haven assets.

Brexit negotiations between the UK and EU broke down on the handling of goods crossing the border between North Ireland, part of the UK, and the Republic of Ireland, which has remained a member of the EU. Britain wants no customs levied, while the EU wants the border treated like any other.

Elsewhere in Europe, Italy is moving forward with its controversial budget proposal, with a target deficit of 2.4% of GDP, far higher than allowed under EU austerity rules. And in Germany, the far-right Alternative party won enough votes to enter Bavaria's parliament while Prime Minister Angela Merkel's allies took a beating, raising questions about the stability of her government.

Relations between the US and Saudi Arabia are becoming strained after reports that a US-affiliated journalist was murdered within the Saudi embassy in Istanbul after writing critically of King Salman. The Saudi's have threatened to use their oil production as a weapon, disrupting global supply, if they come under sanctions.

The dollar fell 0.3% against major rivals as Forex investors shifted into safe-haven currencies like the yen and Swiss franc. Also pressuring the buck, the US budget deficit soared to $779 billion in the fiscal year ending with September, an increase of $113 billion. And retail sales grew by a scant 0.1% for a second straight month in September, far less than expected.

The other precious metals also gained, with silver adding 0.6% while platinum and palladium picked up 0.7% and 1.6%, respectively.

At the Comex close: December gold gained $8.30 to $1,230.30; December silver added 9 cents, to $14.73; January platinum rose $6.30 to $846.30; and December palladium climbed $17.40 to $1,078.20 an ounce.