Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 2.1% to finish at $1,358, closed to a three-week high, as sharply higher CPI data spurred demand for hedges against inflation.

The Consumer Price Index jumped 0.5% in January, the biggest rise in five months, behind higher costs for gasoline, health care, and rent. The core CPI, factoring out volatile food and energy costs, rose 0.3%. Real earnings decreased by 0.2%, however, as wage growth did not keep pace with inflation.

The dollar initially rose on the CPI data as traders speculated that the Fed may be more inclined to accelerate rate hikes. However, the buck reversed direction, falling to a 0.7% loss against major rivals, as falling real wages and January slump of 0.3% in retail sales undermined the case for more rate hikes.

Rising inflation without accompanying pressure to raise interest rates is a potent combination for gold, which has historically been the go-to asset to hedge against inflation. Higher rates would boost the dollar, pressuring gold by making it more expensive overseas.

The other precious metals also rose, with silver also gaining 2.1% while platinum and palladium climbed 2.4% and 1.7%, respectively.

At the Comex close: April gold surged $27.60 to $1,358; March silver rose 35 cents to $16.88; April platinum jumped $23.40 to finish at $999.10; and March palladium climbed $16.60 to $997.30 an ounce.