Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold surged another 1.6% to close above $1,308 as growing uncertainty about the U.S. presidential election drove investors into safe-haven assets. The metal then slipped back under the psychologically-important $1,300 level to $1,298 in electronic trade after the Fed hinted at a December rate hike in its post-meeting statement.

U.S. and global stocks fell again, with the S&P 500 losing 0.5% and the Dow nearly 0.8%, as risk-aversion ripples through the markets. The FBI's controversial decision on Friday to open a new chapter in its investigation into Hillary Clinton's use of a private email server has helped Donald Trump narrowed Clinton's lead several new polls, raising uncertainty about the outcome.

Equity markets have been anticipating a Clinton Whitehouse, given her persistent lead in polling. The unexpected shift in Trump's prospects, along with widespread uncertainty about his policies, has caused volatility to jump by more than 60%, according to the VIX volatility index, as investors adjust to the new landscape.

The dollar also slid on the uncertainty, dropping 0.4% against major rivals as traders shift into safe-haven currencies like the Swiss franc and Japanese yen. A weaker dollar boosts gold and other commodities by making them less expensive to foreign buyers. U.S. Treasury bonds rose for a fourth straight day on flights to safety.

Gold slipped around $9 in electronic after the Fed left interest rates unchanged but hinted that a hike is imminent. The text of the November statement, released after the Comex close, said the case for a higher rates "has continued to strengthen," which traders took to mean that the December meeting, like last year, will result in a quarter-point rise. CME FedWatch calculates the probably at nearly 72%, based on trading in Fed fund futures.

The other precious metals also gained, with silver and platinum adding 1.5% and 0.4%, respectively, while palladium inched up slightly.

At the Comex close: December gold for delivery surged $20.20 to $1,308.20; December silver picked up 28 cents to $18.69; January platinum added $3.90 to $1,001.80; and December palladium edged up 40 cents to $634.50 an ounce.