AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/11/2019: Gold rises for fourth straight week

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.2% to close just under $1,290 as stocks dipped and soft consumer inflation reinforced expectations that the Fed will curtail rate hikes in 2019. The metal picked up 0.3% this week for its fourth straight weekly win.

The Consumer Price Index fell 0.1% in December, its first decrease in nine months, as falling oil prices reduced energy and gasoline costs. The annual rate of inflation dropped from 2.2% to 1.9%, its first dip under 2% in 17 months. The core rate, stripping out food and energy, held at 2.2%.

The soft inflation reading gives the Fed more latitude in postponing or even ending future rate hikes, something that should prove bullish for gold this year. Consistently rising interest rates have supported the dollar over the past two years, creating substantial headwinds for the yellow metal by making it more expensive in other currencies.

Fed Chair Jerome Powell and other US central bankers signaled earlier in the week that slowing global growth, trade conflicts, and weakness in financial markets were giving them pause about further tightening in monetary policy, helping lift gold for the fourth straight week.

US equities slipped for the first time in five sessions, lending muted support to alternative assets, while the dollar picked up 0.1%.

The other precious metals mixed on the day and week. Silver added one cent today but lost 0.8% this week. Platinum fell 1% today and 1.1% this week. Palladium climbed another 0.4% for a weekly rise of 3.6%.

At the Comex close: February gold picked up $2.10 to $1,289.50; March silver added a penny, to $15.65; April platinum dropped $8.10 to $818; and March palladium rose $5.50 to $1,278.70 an ounce, another record close.