Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged 0.1% higher to close at $1,235 as falling oil prices weakened the dollar and boosted demand for alternative assets.

Oil fell sharply at the opening bell after talks between major oil producers to limit production fell apart on Sunday. OPEC and non-OPEC members who supply oil to nearly half of the world failed to find common ground after the Saudis refused a deal that did not include Iran.

Oil prices fell as much as 7% early in the session, but then stabilized after a strike was called by Kuwaiti oil workers, effectively cut that country's output in half.

The dollar declined as traders speculated that falling oil prices will slow the pace of future rate increases. Earlier this year, the Fed cited weakness in oil as a main reason to be cautious in tightening monetary policy. A weaker dollar typically supports gold by making it less expensive to overseas buyers.

The other precious metals closed lower, with silver sliding 0.4% while platinum and palladium lost 1.2% and 0.1%, respectively.

At the Comex close: June gold added 40 cents, to $1,235; May silver slid 6 cents to $16.253; July platinum dropped $12.10 to $977.80; and June palladium dipped 25 cents 0.1% to $568 an ounce.