Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold edged slightly higher to close at $1,242, marking its fourth straight winning session, as rising oil and a dimming rate view supported demand for alternative stores of value.

Brent crude gained 1.8% to a six-week high just under $50 per barrel after the government data reported declining US stockpiles for a third straight week. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Soft growth data and weak inflation have boosted gold in recent sessions as traders increasingly discount the likelihood of another rate hike from the Fed this year. CME FedWatch now puts the odds of a December hike at just 46%. Low rates pressure the dollar by reducing foreign exchange investment seeking high yield, in turn supporting commodities like gold that are priced in dollar for international trade.

Gold's gains were capped by a slightly stronger dollar, which picked up 0.1% from the 10-month low it hit earlier this week. The buck has been hampered by the dimming rate view and uncertainty over whether the ability of Congress to deliver on promised tax reform and infrastructure spending.

The other precious metals were mixed, with silver adding 0.2% while platinum and palladium fell 0.7% and 0.6%, respectively.

At the Comex close: August gold edged up 10 cents to $1,242; September silver added 3 cents, to $16.30; October platinum dropped $6.10 to $924.20; and September palladium slid $5.25 to $859.15 an ounce.