Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold surged 1%, closing at a seven-week high of just under $1,156, after yesterday's dovish minutes from the September FOMC meeting diminished the odds of a rate hike this year, pressuring the dollar and boosting demand for alternative stores of value. The metal finished the week with a gain of 1.7%.

The Fed minutes showed policymakers voicing new concerns about the downside risk associated with slowing global growth, rising volatility in financial markets, the strong dollar, and persistently low inflation. Nearly unanimous in their decision to hold rates unchanged, they prefer to wait for data confirming the economy's ability to push through these headwinds before altering monetary policy. Given recent trends in payrolls, manufacturing, services, exports, and inflation, all of which are flat or slowing, they might have to wait some time.

The dollar fell against major rivals, supporting gold and other commodities denominated in it for international trade by making them less expensive overseas. Oil gained 9% this week on the falling dollar and deepening conflict in Syria.

The other precious metals were higher for the day and week. Silver added 0.4% for a weekly rise of 3.6%. Platinum surged another 2.7% to gain a whopping 7.9% this week. Palladium picked up 0.7% on the day and 0.5% on the week.

At the Comex close: December gold surged $11.60 to $1,155.90; December silver added 5 cents, to $15.82; January platinum jumped $25.80 to $981.40; and December palladium picked up $5 to $708.15 an ounce.