Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged down 0.1% to close at a two-week low under $1,324 as plunging oil and a rally in the dollar dimmed demand for alternative assets.

Oil prices dropped sharply, with West Texas Intermediate crude losing nearly 3%, after the International Energy Agency slashed its demand outlook and said over-supply will continue well into next year. Gold often trades in tandem with oil as a hedge against energy-related inflation.

The dollar rallied 0.5%, pressuring gold and other commodities denominated in it for international trade, as the currencies of oil exporters took a hit from the grim oil outlook. The buck had been under pressure after Fed Governor Lael Brainard, the likely Treasury Secretary in a Clinton Whitehouse, made a strong case yesterday for holding interest rates unchanged for the near future.

Gold found support from safe-haven bids as U.S. stocks fell more than 1%, pulled lower by energy shares and financials.

The other precious metals also finished lower, with silver dipping 0.1% while platinum and palladium lost 0.7% and 0.1%, respectively.

At the Comex close: December gold edged down $1.90 to $1,323.70; December silver dipped nearly 3 cents to $18.98; October platinum dropped $6.90 to $1,036; and December palladium slipped 60 cents to $656.10 an ounce.