Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.2% to close at a seven-month high of $1,297.50 as new tensions in the Middle East sparked demand for safe-haven assets.

A rift has opened between Saudi Arabia and Qatar after the emir of Qatar reportedly praised Iran in an article published by the nation's state-run news agency. The leader of this OPEC member also reached out to Iranian President Rouhani on his recent re-election.

While a relatively small producer of oil, Qatar is the world's largest exporter of natural gas, a key commodity that could be limited in availability by an escalating regional conflict. The U.S. has key military bases Qatar for the air campaign against ISIS, though it counts Saudi Arabia as its primary ally in the Middle East.

Adding to geopolitical jitters, former FBI James Comey is scheduled to testify before Congress on Thursday about private conversations with President Trump about the Russia investigation. And the upcoming snap election in the UK appears to be up for grabs, with polls showed PM Theresa May's Conservative Party ahead of Labor by only one point. A strong showing by Labor could weaken May's bargaining power in Brexit, adding to economic uncertainty in the Eurozone.

The dollar fell against major rival, especially the yen, hitting a seven-month low as investors shifted toward safe havens. U.S Treasury bonds also rose on flights to safety.

The other precious metals also gained, with silver adding 0.7% while platinum and palladium rose 0.6% and 0.8%, respectively.

At the Comex close: August gold gained $14.80 to $1,297.50; July silver added 13 cents, to $17.71; July platinum rose $5.70 to $963.30; and September palladium picked up $6.55, to $848.40 an ounce.