Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged 0.1% higher to finish above $1,356, its highest in nearly three weeks, as surging import prices fueled demand for inflation hedges despite a rebound in the dollar. The metal gained 3% this week for its biggest weekly win in 19 months.

Prices for imported goods surged 1% in January, led by a sharp spike in energy costs but extending to a wide variety of products. The biggest monthly rise in six years provided yet more evidence that inflation is gathering momentum for the first time in years, fueling demand for gold.

Separately, the Commerce Department reported the trade deficit rocketed 12% higher in 2017, hitting the highest levels since 2008. Large trade deficits act as a headwind for growth in GDP.

In positive economic news, housing starts jumped to a 10-year high in January after a dismal December. And consumer sentiment climbed to its highest level in 14 years, spurred by expectations that recent tax cuts will translate into additional spending money.

The dollar bounced higher on the upbeat data, adding 0.5% against major rivals. However, the buck still lost 1.5% this week, as measured by the ICE Dollar Index. A weaker dollar boosts gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were mixed for the day but higher for the week. Silver slipped 0.5% today but still gained 4% this week. Platinum added 1.1% for a weekly rise of 4%. Palladium climbed 2.9 today and 4.5% this week.

At the Comex close: April gold edged up 90 cents to $1,356.30; March silver dropped 8 cents to $16.71; April platinum climbed $11.20 to $1,012.30; and March palladium jumped $29.10 to $1,035.75 an ounce.