Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close above $1,367 after Britain launched a major new round of monetary stimulus, boosting demand for safe-haven assets.

Hoping to cushion the blow from Brexit, the Bank of England cut interest rates for the first time in seven years, pushing its main rate to just a quarter-point, the lowest level in its 322-year history. The BoE will also buy nearly $80 billion in government and corporate bonds in a new program of quantitate easing. Tantamount to printing money, QE cuts the value of a nation's currency while increasing the amount of liquidity in the market.

The UK central bank joins its counterparts in Japan and Australia in undertaking unprecedented stimulus measures in the past week. The ECB is also expected to deepen its easing program in coming months.

Coincidentally, new research from the World Gold Council cites distrust of central bank policies as a leading driver behind gold's 28% rise so far this year. With deeper easing and negative interest rates undermining the risk-profiles of bonds and other traditional asset classes, gold is increasingly attractive to global investors as a store of value and vehicle for potential profit.

Gold gained despite a rising dollar, which typically pressures gold and other commodities denominated in it for international trade by making them more expensive overseas.

The other precious metals finished lower, with silver dipping 0.1% while platinum and palladium fell 0.4% and 1.1%, respectively.

At the Comex close; December gold gained $2.70 to $1,367.40; September silver dipped 3 cents to $20.44; October platinum lost $4.60 to $1,165; and September palladium dropped $7.85 to $706 an ounce.