Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 3.1% to close at a three-week high above $1,941 as the escalating conflict in the Middel East drove investors into safe-haven assets. Rising for five out of the last six sessions, the metal gained 5.2% for the week,

Israel’s military has urged more than one million Palestinians to evacuate northern Gaza as it readies a major ground incursion into the area. Shifting away from air-only operations, Israel said infantry and tanks have already begun raiding inside the Gaza strip, significantly increasing the scale of warfare.

Benchmark 10-year Treasury yields retreated to nearly 4.6% as investors shift into the safety of government debt and precious metals. Falling yields further lift gold by decreasing the opportunity cost for holding it instead of bonds. The dollar was little changed.

Oil prices soared with the rising tensions. US benchmark WTI crude jumped 5.8% on fears of supply disruptions. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Consumer sentiment fell sharply in March to the lowest level since May as Americans fret over inflation, a cooling economy, and their personal finances.

The IMF and World Bank warned today that China risks falling into a prolonged period of disinflation and slow growth, or “Japanization,” as its real estate bubble bursts. Data released today showed China’s consumer inflation was flat in September, falling short of forecasts.

The other precious metals were mostly higher for the day and week. Silver rose 4.3% for a weekly win of 5.4%. Platinum added 0.1% today and 0.3% this week. Outlier palladium slid 0.2% for the session and 1.5% for the week.

At the Comex close: December gold jumped $58.50 to $1,941.50; December silver rose 94 cents to $22.90; January platinum picked up $8.40 to $884.20; and December palladium dipped $2.30 to $1,145.20 an ounce.