Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.8% to close near $1,275 as a falling dollar and rising North Korea tensions supported demand for alternative assets. It was the metal's third straight winning session and highest finish in nearly two weeks. Silver rallied 1.4% to extend its four-session rise to 3.4%.

The dollar lost 0.5% against major rivals, posting its third straight losing session, as the pound and euro rose on expectations of tighter monetary policies to come. Upbeat manufacturing and construction data in the UK increased the likelihood of a rate hike from the Bank of England in November. Across the channel, ECB board member Sabine Lautenschlaeger said the central bank should cut back on quantitative easing. Both moves would make the dollar less attractive to foreign exchange traders seeking higher yield.

The dollar was also pressured by ongoing saber-rattling between Donald Trump and Kim Jong-Un after the President tweeted ominously over the weekend that diplomacy is "making fools of U.S. negotiators" and that "only one thing will work!" Defense Secretary Jim Mattis today warned the Army to be ready if negotiations fail to contain North Korea's nuclear ambitions. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Gold was also supported by rising oil prices. Crude gained 2% on reports that Saudi Arabia is cutting exports and the market is beginning to rebalance after years of excess supply. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Treasurys rose alongside gold and yields fell on flights to safety.

The other precious metals also rose, with platinum and palladium adding 1.6% and 0.7%, respectively.

At the Comex close: December gold gained $9.70 to $1,294.70; December silver jumped 24 cents $17; January platinum climbed $15.10 to $936.50; and December palladium added $6.50, to $934.50 an ounce.