Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close under $1,841 after tumbling oil prices and a sharp rebound in the dollar undercut alternative stores of value. The metal ended the week 1.9% lower, under pressure from monetary tightening by the Fed and other major central banks.

Oil prices plunged 6% to under $110.50 per barrel, the lowest in the month, on worries rising global interest rates and slowing global growth could cut energy demand. In addition, Russia signaled that it may increase oil exports despite sanctions, adding to market supplies.

Gold often trades in sympathy with oil as a hedge against energy-related inflation.

One day after tumbling 1.3% on a surprise rate hike by the Swiss National Bank, the dollar recouped 1% after the Bank of Japan held rates unchanged and vowed to continue quantitative easing. The BOJ is swimming against the tide, with the Fed, Bank of England, and SNB all raising rates this week to combat inflation.

A rising dollar weighs on gold and other commodities by making them more expensive in other currencies, limiting demand overseas.

The other precious metals were also lower for the day and week. Silver dropped 1.4% for a weekly decline of 1.6%. Platinum fell 2.2% today and 4.2% this week. Palladium shed 3.6% for the session and 5.7% for the week.

At the Comex close: August gold slid $9.30 to $1,840.60; July silver dropped 30 cents to $21.59; July platinum lost $20.90 to $930.20; and September palladium dumped $67.80 to $1,798.70 an ounce.