Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.9% to close above $1,238, the highest level since mid-July, as soft factory data and a plunging dollar boosted demand for alternative stores of value, triggering a short-covering rally.

The dollar lost 0.9% against major rivals led by the UK pound, which soared on reports of a Brexit agreement. The UK and EU have apparently come to terms that allow UK banks to continuing doing business in as if Britain were part of the single market. The euro also rallied strongly against the dollar on the news.

Further pressuring the buck, the ISM reported manufacturing fell to a six-month low in October as the burden of tariffs, higher prices, and weaker global demand took their toll. A falling dollar supports gold and other commodities by making them less expensive overseas. Once the dollar began to break down, gold jumped as traders were forced to buy back short positions, spurring higher prices.

According to the World Gold Council, demand for physical gold rose sharply in the third quarter. Global purchases of gold bars and coins by investors jumped 28%, year over year while jewelry demand rose 6%. Central banks made their highest net-purchases in three years, with demand rising 22% year over year.

The other precious metals were also higher, with silver gaining 3.5% while platinum and palladium picked up 2.4% and 1.2%, respectively.

At the Comex close: December gold surged $23.60 to $1,238.60; December silver jumped 50 cents to $14.78; January platinum climbed $19.80 to $862.80; and December palladium added $12.90, to 1,081.40 an ounce.