Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1% to close above $1,864 after Hamas invaded Israel over the weekend, destabilizing the Middle East and driving investors into safe-haven assets. It was the metal’s highest finish in a week.

Hamas-led Palestinians in the Gaza Strip launched an unprecedented attack on Southern Israel, killing hundreds of people and provoking a declaration of war by the Israeli government. It is considered the biggest and most dangerous military conflict in Israel since the Yom Kippur War in 1973.

While Iran has disavowed participation, concerns are growing that Hezbollah, an Iranian proxy, may join and potentially widen the conflict.

Oil prices rocketed higher in the uncertainty about the consequences for OPEC supplies, with US benchmark WTI crude adding 4.3% to more than $86 per barrel. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar initially rose on flights to safety before giving up those gains later in the session, in part on speculation that the Fed is unlikely to raise interest rates further, given the burgeoning geopolitical tensions. The bond market was closed for Columbus Day.

The other precious metals were mostly higher, with silver and platinum rising 0.9% and 0.8%, respectively, while palladium fell 2.7%.

At the Comex close: December gold gained $19.10 to $1,864.30; December silver added 20 cents, to $21.92; January platinum picked up $7.30 to 888,80; and December palladium fell $31.20 to $1,131.90 an ounce.