Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped another 1.3% to close above $1,418, the highest level since August 2013, as Middle East tensions lifted oil and a dovish rate outlook from the Fed pressured the dollar, boosting alternative stores of value. The metal has risen more than 6% in the past five sessions.

WTI crude rose 0.9%, extending last week's 10% surge after President Trump imposed new financial sanctions on Iran. Escalating turmoil in the Gulf of Hormuz, where oil tankers have come under attack, and saber-rattling between the US and Iran have stoked concerns that crude supplies may be interrupted. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar fell another 0.2% against major rivals, deepening its 1% loss from last week, as traders speculate that the Fed will cut interest rates as early as next month. Following the Fed's dovish post-meeting statement last week, CME FedWatch places the odds of a July rate cut at 99%, based on Fed-fund futures trading.

The central bank's consistent program of raising interest rates over the past three years kept the dollar strong, pressuring gold and other commodities by making them more expensive in other currencies. A shift in policy toward cutting rates would create a bullish environment for gold by removing a key prop for the buck.

The other precious metals were also higher, with silver climbing 0.6% while platinum and palladium added 0.1% and 1.9%, respectively.

At the Comex close: August gold gained $18.10 to $1,418.20; July silver added 9 cents, to $15.38; July platinum picked up 70 cents to $811.70; and September palladium climbed $29 to $1,528.60 an ounce.