Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold recouped 0.9% to close above $1,870 as inflation worries and a weaker dollar boosted demand for alternative stores of value. After a two-session pause for profit-taking, it was the metal's highest finish since early June.

Prices for US imports rose 1.2% last month, three times the September increase, according to BLS data released yesterday. This data comes after last week's CPI release showed consumer inflation rising nearly 1% in October for an annualized 6.2%, the hottest in three decades and more than three times the Fed's target 2%.

Fed Chair Jerome Powell is still preaching patience, saying sharply higher prices are a "transitory" effect of temporary supply-chain bottlenecks.

But the markets are not so sure. Momentum for gold continues to mount on concerns that the Federal Reserve is behind the curve on rising prices. The metal has now risen in eight of the past ten trading days, surging more than 5% over that stretch.

Soft housing data also supported safe-haven buying today after new home construction fell 0.7% in October, hampered by shortages of materials and labor.

Wall Street pulled back, with the Dow dropping 0.5% while the S&P 500 and Nasdaq slipped 0.2% each. Benchmark 10-year treasury yields also decline, dipping back under 1.6% on flights to safety and supporting gold by reducing the opportunity cost for holding it instead of bonds.

The dollar dipped 0.1% against major rivals led by the pound and Canadian dollar after surging inflation in the UK and Canada increased the odds of rate hikes by their respective central banks. Data released today showed inflation at a 10-year high in Britain and an 18-year high in Canada.

The other precious metals were mostly higher, with silver and palladium rising 0.9% and 0.8%, respectively, while platinum slid 0.5%.

At the Comex close: December gold gained $16.10 to $1,870.20; December silver climbed 22 cents to $25.17; January platinum dipped $5.40 to $1,069.10; and December palladium rose $16.90 to $2,184.50 an ounce.