Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold picked up 0.2% to close near $1,270 as rebounding oil and soft U.S. data spurred demand for alternative assets.

One day after plunging below $50 on worries about OPEC, oil reclaimed that important threshold by jumping 1% after energy ministers from the Gulf cartel offered reassurances of their commitment to cutting production by 4%. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

U.S. durable goods orders fell in September and business investment weakened, suggesting an uneven course for growth in Q3.

The gold price continued to be underpinned by strong physical demand in India, the world's second-largest gold buy, with the approach of the festival and wedding season, a period when purchases and gilts of gold are considered auspicious. In addition, gold imports into China, the biggest cold consuming nation, jumped 58% in September, to 118 tonnes.

Gold's gains were capped by a stronger dollar, which added 0.3% against major rivals. A rising dollar typically pressures gold and other commodities priced in it for international trade by making them more expensive overseas.

The other precious metals were mixed, with silver and platinum both adding 0.1% while palladium fell 1.3%.

At the Comex close: December gold picked up $2.90 to $1,269.50; December silver added a cent, to $17.64; January platinum edged up 90 cents to $964.90; and December palladium fell $7.75 to $613.20 an ounce.