Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold had its best day in six-weeks, surging 1% to close at $1,281.50, after turmoil in the Middle East pushed oil to a two-year high, fueling demand for inflation-hedges.

Oil prices jumped 3.1% to more than $56 a barrel, its highest level since July 2015, after Saudi Arabia's new crown price purged his rivals over the weekend. More than 60 princes, ministers, and important businessmen were rounded up in a so-called crackdown on corruption, rattling oil markets and sending shockwaves through the Middle East. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar receded 0.2% against major rivals, further supporting gold, as the British pound rebounded strongly after last week's 1% selloff in response to the Bank of England's dovish rate hike. Although it raised rates to 0.5%, as expected, the central bank signaled that future hikes are unlikely. A weaker dollar typically boosts gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals also rose, with silver climbing 2.4% while platinum and palladium added 1.5% and 0.4%, respectively.

At the Comex close: December gold surged $12.60 to $1,281.50; December silver climbed 40 cents to $17.24; January platinum picked up $13.70 to $935.70; and December palladium added $3.55, to $994.95 an ounce.