Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close near $1,348 as oil rallied and the dollar fell, spurring demand for alternative stores of value.

Oil rallied by the most in a week, with West Texas Intermediate crude jumping 1.7% to nearly $66 per barrel as the US Energy Information Administration reported a surprise drop in domestic inventories. A recent agree by OPEC members to extend production cuts through 2018 also supported prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Goldman Sachs is bullish on commodities in 2018, calling the investment environment the best in a decade. Growth and re-leveraging in emerging markets and rising inflation in developed markets has led the influential investment bank to project a 10% rise in commodity index returns this year, along with a target price of $82.50 for crude oil.

The dollar fell 0.5% against major rivals, with most of the losses coming against the UK pound and euro after UBS raised their forecast for the two European currencies. Yesterday's bump from a hawkish Fed statement faded quickly as traders have already priced in a March hike. A falling dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with platinum and palladium adding 0.4% and 0.1%, respectively, while outlier silver slipped 0.5%.

At the Comex close: April gold gained $4.80 to $1,347.90; March silver slid 9 cents to $17.16; April platinum added $3.50, to $1,007.80; and March palladium�s picked up $1.15 to $1,024.70 an ounce.