AGE Daily Gold Update

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

3/12/2019: Gold gains on soft CPI

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.5% to close above $1,298 as soft US inflation weakened the dollar, boosting demand for alternative stores of value.

The Consumer Price Index rose 0.2% in February, driven by higher costs for rent, food, clothing and gasoline. Overall the past 12 months, however, inflation slowed to 1.5%. The so-called core CPI, stripping out volatile food and energy prices, edged up 0.1% for the smallest rise since August.

The dollar retreated 0.3% against major rivals as traders speculated that modest inflation will encourage the Fed to wait and see on further rate hikes. A weaker dollar typically supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

The buck's slide was backstopped by a falling UK pound after Theresa May's Brexit deal lost in Parliament for the second time.

US equities edged higher on the dovish outlook for US interest rates, with the S&P 500 adding 0.3% and the Nasdaq 0.4%. The Dow fell 0.4%, however, after Boeing stock plunged nearly 6% following the second crash in six months of one of its most popular jetliners, which prompted several countries to ground the planes.

The other precious metals were also higher, with silver climbing 0.9% while platinum and palladium rose 1.9% and 0,5%, respectively.

At the Comex close: Gold for April gained $7 to $1,298.10; May silver rose 14 cents to $15.41; April platinum climbed $15.10 to $831.90; and June palladium picked up $8 to $1,490 an ounce.