Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 0.7% to close at a two-week high above $1,322 as the dollar fell on softer-than-expected consumer inflation and oil extended its rally, boosting demand for alternative stores of value.

The CPI rose 0.2% in April as Americans paid more for groceries and gasoline, pushing the 12-month rise to 2.5%, the most in 14 months. However, the more-closely watched core CPI, stripping out volatile food and energy costs, increased by a scant 0.1% for a 12-month rise of 2.1%, falling short of forecasts.

The dollar fell 0.5% against major rivals as traders speculated that the Federal Reserve will be less likely to raise interest rates four times this year if inflation moderates. Fewer rate hikes pressure the dollar by decreasing its attractiveness to foreign exchange investors seeking higher yield. A weaker dollar, in turn, lifts gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Gold was also supported by a 0.4% rise in oil, which extended its rally to another multi-year peak above $71 per barrel. Pending US sanctions against Iran, along with escalating tensions in the Middle East after military action involving Iranian and Israeli forces in Syria, have heightened concerns about access to the region's oil production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver climbing 1.3% while platinum and palladium rose 0.9% and 2.4%, respectively.

At the Comex close: June gold gained $9.30 to $1,322.30; July silver added 21 cents, to $16.76; July platinum climbed $8.50 to $925.10; and June palladium rose $23.30 to $993.90 an ounce.