Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.1% to close near $1,278 as surging oil prices and a weaker dollar boosted demand for alternative stores of value.

West Texas Intermediate crude surged 3% to nearly $66 per barrel, the highest level since October, after the White House ended waivers for countries buying Iranian oil. Gold often trades in sympathy with rising oil as a hedge against energy-related inflation.

Eight nations had received 180-day exemptions from sanctions against buying Iran's crude until May 8, with the expectation of renewal. With those waivers now revoked, and with sanctions on Venezuela already reducing supply, speculators anticipate further increases in oil prices.

The dollar slipped against major rivals as oil-related currencies like those of Canada and Norway, two major oil exporters, broke higher. A weaker dollar tends to support gold and other commodities priced in it for global trade by making them less expensive overseas.

Weak US housing data also lent some safe-haven bids. Housing starts fell to a two-year low in March while existing-homes sales dropped nearly 5%.

The other precious metals were mixed, with silver adding 0.1% while platinum and palladium dropped 0.1% and 1.9%, respectively.

At the Comex close: June gold rose $1.60 to $1,277.60; May silver added 2 cents, to $14.97; July platinum slid $1.50 to $903; and June palladium dropped $28.70 to $1,371.50 an ounce.