AGE Daily Gold Update

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

9/12/2019: Gold rises on easing, inflation

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose for a second session, adding 0.3% to close above $1,507, as aggressive easing from the ECB and rising US consumer inflation boosted demand for alternative stores of value.

The European Central Bank slashed interest rates further into the negative, as widely expected, in order to energize the faltering Eurozone economy. In addition, the bank announced a new round of monthly bond purchases known as quantitative easing.

The resumption of QE, which will be open-ended, signals a stronger commitment to easing than most analysts expected. Monetary easing tends to devalue a nation's currency by increasing the amount of cheap money in its financial system. Investors often turn to gold as a proven long-term store of value

US consumer inflation jumped in August, with the core CPI rising to 2.4% over the past 12 months, the most in more than a year. Rising inflation is typically spurs demand for gold as a hedge against the loss of purchasing power that accompanies higher prices.

The other precious metals were also higher. Silver inched up a penny while platinum rose 1.3%. Palladium jumped 3.1% to a new record high on supply concerns stemming from labor problems in South African mines. The metal is widely used in catalytic converters in auto manufacturing.

At the Comex close: December gold gained $4.20 to $1,507.40; December silver added one cent, to $18.18; October platinum rose $12.40 to $952.60; and December palladium jumped $48 to $1,604.80 an ounce.