AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
8/12/2020: Gold edges up on inflation, dollar
Source: Bill Musgrave, American Gold Exchange
Austin — Gold edged up 0.1% to close at $1,949 as a rising consumer inflation and a weaker dollar boosted demand for alternative stores of value.
The Consumer Price Index climbed 0.6% for the second straight month in July, beating forecasts, as the cost of a wide variety of goods and services rebounded further from pandemic lows. The core CPI, excluding volatile food and energy prices, also rose 0.6%. The data follow a similar rise in wholesale inflation for the month.
The dollar rolled back 0.2% against major rivals as negotiations in Congress for another coronavirus aid package went nowhere, leaving tens of millions of Americans without relief. A falling dollar supports gold and other commodities by making the me less expensive overseas.
Traders speculate that other major economies and currencies will bounce back more quickly than the US because of better containment of the virus and greater political unity in providing stimulus.
The other precious metals were lower, with silver sliding 0.3% while platinum and palladium dropped 1.3% and 0.3%, respectively.
At the Comex close: December gold gained $2.70 to $1,949; September silver slipped 7 cents to $25.98; October platinum fell $12.20 to $959.20; and September palladium dipped $6.80 to $2,168.20 an ounce.
AGE Gold Commentary
Gold is gathering momentum to begin its assault on the previous record high of $1,911 and then push above $2,000 ... read more